Performance assessment of participation banks based on Maqasid al-Shari'ah framework : evidence from Türkiye

In a dual banking system, participation banks (PBs) are expected to follow Islamic principles, morals, and ethical norms, all of which ultimately align with Maqasid al-Sharia'ah (MS). This study aimed to assess performance of PBs in Türkiye beyond traditional yardsticks to accentuate their ethical, social, and financial roles compliant with the axioms of MS. A mixed method deploying qualitative and quantitative inquiry was used. The first stage used text mining, and the second stage developed the MS Performance Index (MSPI) by adopting entropy weights based on the Ghazalian perspective. The datasets were derived from 18 reports for 2019-2021. Türkiye Finans appeared to have the highest score, whereas Ziraat received the lowest on MSPI scores. PBs achieved the highest scores for the wealth objective component and the lowest score for the intellect component because they became market-oriented and thus their disclosures did not support and promote MS.