Finance:Participation banking

From HandWiki

Participation banking is a name given to Islamic banks mainly in Turkey, as well as in the broader MENA region.[1][2] There are participation banks in Turkey, Pakistan , Bangladesh, Indonesia, Saudi Arabia, Malaysia, the UAE and other Gulf countries.

History

In 2000 participation banks reached[clarification needed] only 2% of net assets,[citation needed] by 2010 this rate increased up to 4.3%.[citation needed] In the third quarter of 2013, the rate increased up to 6.1% with 90.7 billion TL in assets.[citation needed] Regarding the profit margins of the participation banks, Malaysia, Indonesia and Gulf countries have more than 50% of the market share, it is stated[citation needed] that Turkey has more potential in growth. Also, Turkey, Pakistan , Bangladesh, and Indonesia stand as the leading countries[clarification needed] among the participation banks.[3] Saudi Arabia, the UAE and Malaysia are the three largest participation banking markets, in terms of assets.[4] Iran has 36% of the worldwide assets of the participation banks, Malaysia has 17%, Saudi Arabia has 14% and Turkey has 3.1% of the[clarification needed] market share.[citation needed]

According to Ernst & Young, the assets of global participation banking reached United States dollar $930 billion in 2015, with growth rates declining across all regions compared to previous years.[4]

List of participation banks

Defunct

  • Asia Participation Bank (founded 1996, closed 2016)

References