A Comparison between Ottoman Cash Waqfs (CWs) and Participation Banks and Modern Interest-free Financial Institutions

Mehmet Bulut and Cem Korkut

MPRA Paper from University Library of Munich, Germany

Abstract: The Ottoman State is accepted as the civilization of waqf so that the borrowing of people who needed cash was provided by waqfs that had cash as capital. These waqfs operated their capitals within the limits that were drawn by Ottoman ulema under the effects of interest ban in Islamic states. These waqfs can be thought of as the pioneers of modern Islamic financial institutions. The CWs became the factor of stability in the Ottoman financial system with controlling high usury rates and determining the market interest rate. Today, the participation banks as interest-free financial institutions fulfill this function. The participation banks that bring together the people who want to borrow money without interest and the people who want to operate his capital with halal ways are separated from cash waqfs in some respects. In this study, even though they follow similar financial methods, the difference in their purposes and other characteristics of interest-free financial institutions and their pioneer of CWs will be examined.

Keywords: Ottoman State; cash waqfs; interest-free financial institutions; participation banks; Islamic finance (search for similar items in EconPapers)
JEL-codes: G20 G23 N20 N25 (search for similar items in EconPapers)
Date: 2016-12-25, Revised 2017-01-10
New Economics Papers: this item is included in nep-hme
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Vakıflar Dergisi 46 (2016): pp. 22-44

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/76009/1/MPRA_paper_76009.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:76009

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().