8 Impacts of a New Islamic Financing Method, the Put Model, on Local Development

Asst. Prof. Yavuz Turkan / Bayram Kayantas / Erhan Kaynar / Murat Turkan

Due to the interest-bearing transactions in the banks, Muslims have kept away from the banks and have not been able to bring their savings into the economy. Islamic banks have become a necessary institution for the saver and needy investors who want to use credit by staying away from interest. However, the needy people damaged most from the Islamic banks because the ultimate goal of these banks is to create a profit maximization. In this paper, Put Model is put forward as a new Islamic financing system for investors who want to stay away from interest taking into account the support given to animal husbandry in recent years, and the effect of this model on local development is expressed in this study. By this model, it is aimed to increase the number of livestock in Turkey, regarding this to lower high meat prices, to contribute to the economy by using the idle stables, sheep pens and meals more efficiently and to enhance the employment by means of the granted loans. It is considered that this work will contribute to both the investors and the Islamic bankers that work as intermediation service as well as to Turkey.