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Year 2013, Volume: 2 Issue: 1-2, 91 - 110, 01.06.2013

Abstract

References

  • Ahmad, A., 1994. Contemporary practices of Islamic financing techniques. Islamic Economic Studies, 1, pp.15-52.
  • Al-Muharrami, S., Matthews, K., & Khabari, Y., 2006. Market structure and competitive conditions in the Arab GCC banking system. Journal of Banking & Finance, 30, pp. 3487-3501.
  • Aktan, B. & Masood, O., 2010. The state of competition of the Turkish banking industry: an application of the Panzar-Rosse model, Journal of Business Economics and Management, 2010 (1), pp. 131-145.
  • Akin, G.G., Aysan, A.F. and Yildiran, L., 2009 Transformation of the Turkish Financial Sector in the Aftermath of the 2001 Crisis. Onis, Z. and F. Senses (eds.) Turkey and the Global Economy: Neoliberal Restructuring and Integration in the Post-Crisis Era, Routledge, London, and NY, pp. 73-100
  • Akin, G. G., Aysan, A. F., Kara, G. I., Yildiran, L., 2011. Non-price competition in the Turkish credit card market. Contemporary Economic Policy, 29/4, pp. 593-604.
  • Abbasoglu, O. F., Aysan, A. F. and Gunes, A., 2007 Concentration, Competition, Efficiency and Profitability of the Turkish Banking Sector in the Post-Crises Period, MPRA Paper No. 5494, pp. 1-24.
  • Aysan, A. F., Karakaya, M. M., Uyanik, M., 2011. Panel stochastic frontier analysis of profitability and efficiency of Turkish banking sector in the post crisis era, Journal of Business Economics and Management, 12 (4), pp. 629-654.
  • Askari, H., 2012. Islamic finance, risk-sharing, and international financial stability, Yale Journal of International Affairs, 7(1), pp. 1-8.
  • Beck, T., Demirgüç-Kunt, A., & Merrouche, O., 2013. Islamic vs. conventional banking: Business model, efficiency and stability, Journal of Banking & Finance, 37 (2), pp. 433-447.
  • Bikker, J. A., & Haaf, K., 2002. Competition, concentration and their relationship: An empirical analysis of the banking industry. Journal of Banking & Finance, 26, pp. 2191-2214.
  • Bresnahan, T. F., 1982. The oligopoly solution is identified. Economic Letters, 10, pp. 87-92. Čihák, M., & Hesse, H., 2010. Islamic banks and financial stability: An empirical analysis, Journal of Financial Services Research, 38(2-3), pp. 95-113.
  • Coccorese, P., 2004. Banking competition and macroeconomic conditions: A disaggregated analysis. Journal of International Financial Markets, Institutions & Money, 14, pp. 203– 219.
  • De Bandt, O., & Davis, E. P., 2000. Competition, contestability and market structure in European banking sectors on the eve of EMU. Journal of Banking & Finance, 24, pp. 1045-1066.
  • Diamond, D. W. & Rajan, R. G., 2009. The credit crisis: conjectures about causes and remedies, American Economic Review: Papers and Proceedings, 99(2), pp. 606-610.
  • Demsetz, H., 1973. Industry structure, market rivalry, and public policy. Journal of Law and Economics, 16(1) , pp. 1-9.
  • El-Gamal, M., & Inanoglu, H,. 2000. Islamic banking in Turkey: boon or bane for the financial sector. In Proceedings of the Fifth Harvard University Forum on Islamic Finance, Center for Middle Eastern Studies, Harvard University, pp. 7-20.
  • Ernst & Young., 2012. World Islamic Banking Competitiveness Report 2012-2013: Growing Beyond: DNA of Successful Transformation. Ernst & Young.
  • Gambacorta, L., 2009. Monetary policy and the risk-taking channel, BIS Quarterly Review, December 2009, pp. 43-53
  • Günalp, B. & Çelik, T., 2006. Competition in the Turkish Banking Industry, Applied Economics, 38(11), pp. 1335-1342.
  • Hondroyiannis, G., Lolos, S., & Papapetrou, E., 1999. Assessing competitive conditions in the Greek banking system. Journal of International Financial Markets, Institutions and Money, 9, pp. 377-391.
  • Iqbal, M., 2001. Islamic and conventional banking in the 1990s: A comparative study. Islamic Economic Studies, 8, pp. 1-27.
  • Lau, I. J., 1982. On identifying the degree of competitiveness from industry price and output data. Economic Letters, 10(1–2), pp. 93–99.
  • Mamatzakis, E., Staikouras, C., & Koutsomanoli-Fillipaki, N., 2005. Competition and concentration in the banking sector of the South Eastern European region. Emerging Markets Review, 6, pp. 192-209.
  • Molyneux, P., Lloyd-Williams, D. M., & Thornton, J., 1994. Competitive conditions in European banking. Journal of Banking & Finance, 18, pp. 445-459.
  • Molyneux, P., Thornton, J., & Michael Llyod-Williams, D., 1996. Competition and market contestability in Japanese commercial banking. Journal of Economics and Business, 48, pp. 33-45.
  • Moore, C. H., 1990. Islamic banks and competitive politics in the Arab world and Turkey, Middle East Journal, 44 (2), pp. 234-255.
  • Nathan, A., & Neave, E. H., 1989. Competition and contestability in Canada’s financial system: Empirical results. The Canadian Journal of Economics, 22, pp. 576-594.
  • Obstfeld, M. & Rogoff, K., 2009. Global imbalances and the financial crisis: products of common causes, Centre for Economic Policy Research Discussion Paper, No: 7606.
  • Ozsoy I. & Yabanli A., 2010. The Rising Sector in Turkey: Participation Banking, Market Report: 17 November, (19). Available at: <http://www.islamicfinancenews.com.> [Accessed 12 August 2013].

Integration of the Participation Banking Legislations to the Banking Law and its Influence on Competition

Year 2013, Volume: 2 Issue: 1-2, 91 - 110, 01.06.2013

Abstract

In some countries such as Turkey, Islamic banks and conventional banks coexist in banking industry. However, due to dissimilarities in their business models, these institutions may be subject to different statutory and regulatory arrangements. The arrangements in a dual banking system might repel potential customers from Islamic banks if privileged arrangements are solely open to conventional banks. Up until late 2005, Islamic banks in Turkey were recognized as “special finance houses” and were exempt from the rights that covered conventional banks, like deposit coverage. As an interesting case, the legislative changes in late 2005 have eliminated the deprivations and provided more constructive environment for Islamic banks. Yet, what these legislative changes have brought about for Islamic banks is still unexplored. In this paper, we study the effects of the legislative changes in Turkish Islamic banking on market structure. The results reveal that Islamic banks gained more market power after the enactment of various legislations and integration of these legislations to the Banking Law

References

  • Ahmad, A., 1994. Contemporary practices of Islamic financing techniques. Islamic Economic Studies, 1, pp.15-52.
  • Al-Muharrami, S., Matthews, K., & Khabari, Y., 2006. Market structure and competitive conditions in the Arab GCC banking system. Journal of Banking & Finance, 30, pp. 3487-3501.
  • Aktan, B. & Masood, O., 2010. The state of competition of the Turkish banking industry: an application of the Panzar-Rosse model, Journal of Business Economics and Management, 2010 (1), pp. 131-145.
  • Akin, G.G., Aysan, A.F. and Yildiran, L., 2009 Transformation of the Turkish Financial Sector in the Aftermath of the 2001 Crisis. Onis, Z. and F. Senses (eds.) Turkey and the Global Economy: Neoliberal Restructuring and Integration in the Post-Crisis Era, Routledge, London, and NY, pp. 73-100
  • Akin, G. G., Aysan, A. F., Kara, G. I., Yildiran, L., 2011. Non-price competition in the Turkish credit card market. Contemporary Economic Policy, 29/4, pp. 593-604.
  • Abbasoglu, O. F., Aysan, A. F. and Gunes, A., 2007 Concentration, Competition, Efficiency and Profitability of the Turkish Banking Sector in the Post-Crises Period, MPRA Paper No. 5494, pp. 1-24.
  • Aysan, A. F., Karakaya, M. M., Uyanik, M., 2011. Panel stochastic frontier analysis of profitability and efficiency of Turkish banking sector in the post crisis era, Journal of Business Economics and Management, 12 (4), pp. 629-654.
  • Askari, H., 2012. Islamic finance, risk-sharing, and international financial stability, Yale Journal of International Affairs, 7(1), pp. 1-8.
  • Beck, T., Demirgüç-Kunt, A., & Merrouche, O., 2013. Islamic vs. conventional banking: Business model, efficiency and stability, Journal of Banking & Finance, 37 (2), pp. 433-447.
  • Bikker, J. A., & Haaf, K., 2002. Competition, concentration and their relationship: An empirical analysis of the banking industry. Journal of Banking & Finance, 26, pp. 2191-2214.
  • Bresnahan, T. F., 1982. The oligopoly solution is identified. Economic Letters, 10, pp. 87-92. Čihák, M., & Hesse, H., 2010. Islamic banks and financial stability: An empirical analysis, Journal of Financial Services Research, 38(2-3), pp. 95-113.
  • Coccorese, P., 2004. Banking competition and macroeconomic conditions: A disaggregated analysis. Journal of International Financial Markets, Institutions & Money, 14, pp. 203– 219.
  • De Bandt, O., & Davis, E. P., 2000. Competition, contestability and market structure in European banking sectors on the eve of EMU. Journal of Banking & Finance, 24, pp. 1045-1066.
  • Diamond, D. W. & Rajan, R. G., 2009. The credit crisis: conjectures about causes and remedies, American Economic Review: Papers and Proceedings, 99(2), pp. 606-610.
  • Demsetz, H., 1973. Industry structure, market rivalry, and public policy. Journal of Law and Economics, 16(1) , pp. 1-9.
  • El-Gamal, M., & Inanoglu, H,. 2000. Islamic banking in Turkey: boon or bane for the financial sector. In Proceedings of the Fifth Harvard University Forum on Islamic Finance, Center for Middle Eastern Studies, Harvard University, pp. 7-20.
  • Ernst & Young., 2012. World Islamic Banking Competitiveness Report 2012-2013: Growing Beyond: DNA of Successful Transformation. Ernst & Young.
  • Gambacorta, L., 2009. Monetary policy and the risk-taking channel, BIS Quarterly Review, December 2009, pp. 43-53
  • Günalp, B. & Çelik, T., 2006. Competition in the Turkish Banking Industry, Applied Economics, 38(11), pp. 1335-1342.
  • Hondroyiannis, G., Lolos, S., & Papapetrou, E., 1999. Assessing competitive conditions in the Greek banking system. Journal of International Financial Markets, Institutions and Money, 9, pp. 377-391.
  • Iqbal, M., 2001. Islamic and conventional banking in the 1990s: A comparative study. Islamic Economic Studies, 8, pp. 1-27.
  • Lau, I. J., 1982. On identifying the degree of competitiveness from industry price and output data. Economic Letters, 10(1–2), pp. 93–99.
  • Mamatzakis, E., Staikouras, C., & Koutsomanoli-Fillipaki, N., 2005. Competition and concentration in the banking sector of the South Eastern European region. Emerging Markets Review, 6, pp. 192-209.
  • Molyneux, P., Lloyd-Williams, D. M., & Thornton, J., 1994. Competitive conditions in European banking. Journal of Banking & Finance, 18, pp. 445-459.
  • Molyneux, P., Thornton, J., & Michael Llyod-Williams, D., 1996. Competition and market contestability in Japanese commercial banking. Journal of Economics and Business, 48, pp. 33-45.
  • Moore, C. H., 1990. Islamic banks and competitive politics in the Arab world and Turkey, Middle East Journal, 44 (2), pp. 234-255.
  • Nathan, A., & Neave, E. H., 1989. Competition and contestability in Canada’s financial system: Empirical results. The Canadian Journal of Economics, 22, pp. 576-594.
  • Obstfeld, M. & Rogoff, K., 2009. Global imbalances and the financial crisis: products of common causes, Centre for Economic Policy Research Discussion Paper, No: 7606.
  • Ozsoy I. & Yabanli A., 2010. The Rising Sector in Turkey: Participation Banking, Market Report: 17 November, (19). Available at: <http://www.islamicfinancenews.com.> [Accessed 12 August 2013].
There are 29 citations in total.

Details

Other ID JA82BF36AS
Journal Section Research Article
Authors

Ahmet Faruk Aysan This is me

Mustafa Disli This is me

Huseyin Ozturk This is me

Publication Date June 1, 2013
Published in Issue Year 2013 Volume: 2 Issue: 1-2

Cite

APA Aysan, A. F., Disli, M., & Ozturk, H. (2013). Integration of the Participation Banking Legislations to the Banking Law and its Influence on Competition. Afro Eurasian Studies, 2(1-2), 91-110.

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