Abstract
In this study, the basic principles of participation banking system, purpose, property, historical and legal development out of the square of the reasons the contributions of the economic structure in Turkey, with the participation of other banks within the banking systems in today's current state of services and activities of the traditional banking system, accounting methods and the application in other ways, the comparison is made. The interest-free banking system, called the participation banking system, came out of the idea phase in the 1970s and was first implemented in Egypt in 1976. Founded in Turkey in 1983 by a Decree-Law (Decree-Law), Private Financial Institutions with their then name, Participation Banks with their new names have shown rapid momentum on a global scale and, especially in Turkey, over the past two decades. Keywords: Interest-Free Banking, Private Financial Institutions, Participation Banking
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