POOL SELECTION AND POOL MANAGEMENT APPROACH IN CASH FUNDING IN PARTICIPATION BANKS

Abstract

The basic principle is to evaluate the savings collected by the participation banks, both in the pools of participation accounts and in the fund allocation phase, in order to increase the profit to be distributed to these pools, in line with the principles of participation finance. Especially in the fund allocation phase, in determination of the pool from which the fund to be used will be selected; there is a common opinion that participation pools should be prioritized in line firstly the pool occupancy rate, then with the criteria determined. However, in practice, it is seen that this view can be deviated from time to time, and different pools can be preferred instead of participation pools, even though the pool occupancy rate is suitable. In the study, it was stated that the implementation of the common opinion regarding the prioritization of participation pools in fund allocation pool selections and the standardization of all participation banks should be ensured with the arrangements to be made, without allowing the use of initiative. For this purpose, the actual financial data formed in the current situation were analyzed, pool-based inferences were made and suggestions were made in accordance with the purpose of the study.