Articles

Performance Determinants of Participation Banks: the Role of Special Current Accounts

ABSTRACT

Participation banks collect participation funds for credit allocation by participation accounts and special current accounts as main function. Profit or loss offered to participation accounts on base of participation share ratio while special current accounts are considered as cost-free resources. Participation funds are used in the models that analyze participation banks’ performance. Although participation fund types are not considered as variables also special current accounts. This research brings suggestions for the variables for performance analysis of participation banks for further researches.

Keywords

Participation banking performance participation funds special current accounts net interest margin net profit share margin fees and commissions income