Abstract :One of the most important functions of the banking sector, which is one of the important actors of the financial world, is credit transactions. Banks perform some loan transactions to meet the fund needs of real and legal persons, regardless of their identity. Funding, that is, lending of markets, is carried out under two main headings. This series of transactions made in cash and non-cash loan types is the meeting of savers with surplus funds and real and legal persons in need of funds under the roof of banks. Credit transactions in real markets have intensified in the presence of commercial and participation banks. These two types of banking, which are generally similar in credit processes, show some differences. Since commercial banks conduct their activities on the basis of interest and participation banks operate on the basis of dividends, the basic element of Islamic finance, there are also some differences in their loan activities. However, in terms of credit risk, both commercial banks and participation banks are subject to similar risk factors. In this study, the risk factors that participation banks may encounter in non-cash loan items and the management of these risks will be discussed. Keywords : Participation bank, non-cash credit, risk management
