@article{article_406283, title={Relationship between Rate of Returns on Foreign Exchange Islamic and Conventional Deposits in Turkey}, journal={Optimum Ekonomi ve Yönetim Bilimleri Dergisi}, volume={5}, pages={147–162}, year={2018}, DOI={10.17541/optimum.406283}, author={Ergeç, Etem Hakan}, keywords={Profit Share,Interest Rate,Foreign Exchange Deposits,Islamic Banking,Turkish Banking System}, abstract={<p> <span lang="en-us" style="font-size:9pt;line-height:115%;font-family:’Times New Roman’, serif;" xml:lang="en-us">The causal relationship between the rates of
return on deposits of Islamic banks and deposits of conventional banks in an economy
with dual banking systems is a significant area of study in the literature. While
studying this causal relationship, vast majority of the existing studies consider
domestic currency deposits. In this paper instead of domestic currency
deposits, I consider foreign exchange currency deposits. By employing Toda-Yamamoto
causality analysis, a causality relationship for all the maturity groups is
found, but not for the 12-months maturity. For dollar accounts, the causality
relationship between rate of returns of Islamic and Conventional banking is
found to be two-way. For Euro accounts, this causality relationship is found to
be one way, where the interest rate of conventional banks is Granger cause of profit
share of Islamic banks. </span> <br /> </p>}, number={2}, publisher={Usak University}