INTEREST- FREE BANKING: REASONS FOR CHOOSING ISLAMIC BANKING IN BINGOL CITY

Year 2017, Volume: 3 Issue: 1, 257 - 268, 30.06.2017

Imran Aslan

https://doi.org/10.17261/Pressacademia.2017.411

Abstract

Participation banking (Interest Free Banking)/Islamic
Banking (IB) is a current topic in Turkey and in many Muslim countries. In
Hammurabi’s law  and Babil’s documents in
1955-1913  BC, interest and usury were
forbidden to protect the community. Participation banking is explained in this
study and compared with interest orienting conventional banking system.
 A questionnaire method was used as
a data collection tool in Bingöl city in East of Turkey in 2015. 500 customers
of Turkey Finance Bank in Bingöl were surveyed and obtained data was analyzed
through IBM SPSS 20 Software. Frequency-analysis method, descriptive statistics
and ANOVA methods were used to analyze collected data. According to these findings, it can be said that participating
banking is usually preferred among 20-40 age group. Also, it is stated that
participants use participating banking less than 6 years. The reason why they
select participation banking is as; close relationship with branch personnel,
leading religious sensibility, friendly and helpful personnel, image and
popularity of banking, Islamic Audit Commission of bank.
As the age of participants increase, they have more positive thoughts on
participation banking. Moreover, there is a high suspiciousness that IB is
applied as conventional banking, making it also Haram.  

Keywords

Interest-free banking, Islamic Banking, Participation Banking

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