BASIC PRINCIPLES OF INTEREST AND INTEREST-FREE FINANCE TODAY

Authors : Osman Nuri Şahin, Ahmet Uğur Adıgüzel

Pages : 113-132

Doi:10.57085/ufebud.1492777

View : 65 | Download : 78

Publication Date : 2024-12-31

Article Type : Research Paper

Abstract :Traditional interest-based financial systems, while crucial for economic growth, introduce significant risks and contribute to the gap between financial markets and the real economy. In contrast, interest-free financial systems, which avoid interest and speculative activities, offer potential advantages in minimizing risks and promoting financial stability. The Islamic financial system, grounded in Sharia principles, utilizes profit-sharing, leasing, and sales techniques instead of interest, and is gaining traction worldwide for its resilience against financial crises and its promotion of social and economic justice. The study explores the foundational principles and global perspectives of interest-free financial systems. The research examines the historical development of banking systems in Turkey and globally, highlighting the rise of participation (Islamic) banking. Participation banks operate on a profit-sharing basis, providing an inclusive financial environment for interest-sensitive individuals. Despite their potential, more research is needed to address the inherent challenges and further develop the interest-free financial system.
Keywords : Bankacılık, Faizsiz Bankacılık, Katılım Bankacılığı, Faizsiz Finans Sistemi