THE COMPREHENSIVE ANALYSIS OF THE TURKISH ISLAMIC BANKING SYSTEM AND THE HUNGARIAN BANKING SYSTEM

Abstract

After the 2008 economic crisis, special attention was given to alternative financing techniques, and so to Islamic banks. During the crisis the stability of the Islamic banks was higher than the stability of the conventional banks.

The major source of revenue of the conventional banks is interest and other income from speculative transactions, so a conventional bank can shows higher results than an Islamic bank. Islamic banks operate on religious principles, so many activities are forbidden to them, but nonetheless they can achieve profit and become operational.

In the case of the Turkish Islamic banking sector the following conclusions can be made after examination of the datas. The stability of the banks' was not at risk, Capital adequacy is satisfactory.  The profitability deteriorated, but not significantly. The liquidity crisis has been highlighted in the outbreak, but for Turkish banks to maintain liquidity remained. The liquidity can be said appropriate, as banks sought to have sufficient amount of liquid assets.

The Turkish Islamic banking system have not caused a drastic decline or negative results in terms of the global economy occurring adverse events. Perhaps, due to the fact that Islamic banks have not assumed a higher risk before the crisis, it did not make the banking system vulnerable to the economic downturn.

References

1. Attila Bajkó, József Varga, Gábor Sárdi: RISE OF THE ISLAMIC BANKING SECTOR In: Szendrő Katalin, Soós Mihály (szerk.) Proceedings of the 4th International Conference of Economic Sciences., 2013.05.09-2013.05.10. Kaposvár: Kaposvár University, pp. 302-312.
2. Judit Balázs (2011): Az iszlám bankrendszer: Tanulságok a neoliberális pénzügypolitika figyelmébe, In: Valóság, 2011. Vol.54. Num. 1., pp. 1-11
3. Mária Boglárka Gálosi (2010): Iszlám ablak – ablak az iszlámra, Budapesti Corvinus Egyetem, thesis, URL: http://iszlam.com/images/stories/iszlam/Galosi_Maria_Boglarka_szakdolgozat2010.pdf, Downloaded: 2015.08.25.
4. Gergő Pálfi (2010): Iszlám finanszírozás a pénzügyi piacokon, In: Fordulat, Num.11. 2010., URL: http://fordulat.net/pdf/11/F11_Palfi-finance.pdf Downloaded: 2015.08.25.