THE ISLAMIC ECONOMIC PRINCIPLES AS A FOUNDATION OF ISLAMIC FINANCIAL INSTITUTIONS PRACTICE AND ITS ESTABLISHMENT IN TURKEY

Abstract

Today, the effectiveness of participation in banking / Islamic financial institutions within the global economic system is increasing day by day. The reason for this acceleration in the sector is based on the basic principles of participation banking of interest-free financing and transactions than the interest-based working principle of interested banking. Religiously sensitive savers and investors' reliance on interest-free financial instruments plays an important role in the growth of the sector. Another aspect of the preference of savers and investors for Islamic financial institutions is that the quality of service and products, the element of image and trust, the competence of the staff and social/religious motivations in these institutions are decisive. Islamic financial institutions take this interest and growth from the Islamic economic principles they actually have. The main goal of Islamic financial institutions is to add funds to the national and global economy by savers and investors who do not want to enter interest-only transactions in accordance with Islamic financial principles. Islamic financial institutions have built themselves on a number of Islamic economic principles. These principles are generally as follows: Based on interest-free earnings; based on real trade; based on risk sharing; specific processing areas; avoiding speculation; based on the principle of transparency; based on the principle of reliability; to avoid uncertainty (gharar) and excessive ignorance (cehl). In the study, how these principles, which are the rules of the Islamic economy and based on Islamic financial institutions, are included in the sources of the Qur'an, Sunnah and Islamic Law will be discussed individually. It will then examine how Islamic financial institutions have ruled these principles.