EVALUATION OF ISLAMIC BANKING ACTIVITIES IN THE ORGANIZATION OF TURKIC STATES

The Organization of Turkic States (OTS) is an international organization founded in 1992 in Ankara, and consisting of Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan, and Türkiye. These countries collaborate to promote cooperation among Turkic nations, strengthen cultural ties, and develop economic relations. In this study, Islamic banking activities in TDT member countries are evaluated on a comparative basis. Islamic banking is a system that provides interest-free financing and operates in compliance with Islamic law. It provides financing through alternative methods such as profit-loss sharing (mudarabah and musharakah), the buying and selling of goods and services (murabaha), sukuk (lease certificates, Islamic bonds), and leasing (ijara). In the study, existing regulations and practices related to Islamic banking were utilezes a literature review, country reports, and financial analyses. Data were collected and examined using qualitative and quantitative methods such as the legal frameworks of countries and banking sector reports. The findings reveal that the level of development in Islamic banking varies among TDT member countries. Türkiye and Kazakhstan are more advanced in this field, while Azerbaijan and Uzbekistan are seen to be in the development stage. Kyrgyzstan, on the other hand, is striving to expand in this area by offering microfinance and small-scale Islamic financial services. The development and expansion of Islamic banking activities among the member countries of the OTS, where the majority of the population is Muslim, will significantly contribute to regional development and financial integration. Furthermore, the use of Islamic financial products has the potential to enhance banks’ economic performance and financial stability, contributing to sustainable growth.