EVALUATION OF ISLAMIC BANKING ACTIVITIES IN THE ORGANIZATION OF TURKIC STATES

Abstract

The Organization of Turkic States (OTS) is an international organization founded in 1992 in Ankara, and consisting of Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan, and Türkiye. These countries collaborate to promote cooperation among Turkic nations, strengthen cultural ties, and develop economic relations. In this study, Islamic banking activities in TDT member countries are evaluated on a comparative basis. Islamic banking is a system that provides interest-free financing and operates in compliance with Islamic law. It provides financing through alternative methods such as profit-loss sharing (mudarabah and musharakah), the buying and selling of goods and services (murabaha), sukuk (lease certificates, Islamic bonds), and leasing (ijara). In the study, existing regulations and practices related to Islamic banking were utilezes a literature review, country reports, and financial analyses. Data were collected and examined using qualitative and quantitative methods such as the legal frameworks of countries and banking sector reports. The findings reveal that the level of development in Islamic banking varies among TDT member countries. Türkiye and Kazakhstan are more advanced in this field, while Azerbaijan and Uzbekistan are seen to be in the development stage. Kyrgyzstan, on the other hand, is striving to expand in this area by offering microfinance and small-scale Islamic financial services. The development and expansion of Islamic banking activities among the member countries of the OTS, where the majority of the population is Muslim, will significantly contribute to regional development and financial integration. Furthermore, the use of Islamic financial products has the potential to enhance banks’ economic performance and financial stability, contributing to sustainable growth.

Keywords

• Organization of Turkish States
• Islamic Finance
• Islamic Banking

TÜRK DEVLETLERİ TEŞKİLATINDA İSLAMİ BANKACILIK FAALİYETLERİNİN DEĞERLENDİRİLMESİ

Abstract

Türk Devletleri Teşkilatı (TDT), temeli 1992 yılında Ankara’da atılan ve Azerbaycan, Kazakistan, Kırgızistan, Özbekistan ve Türkiye’nin üyesi olduğu bir uluslararası kuruluştur. Bu ülkeler Türk dünyası ülkeleri arasında işbirliğini teşvik etmek, kültürel bağları güçlendirmek ve ekonomik ilişkileri geliştirmek amacıyla bir araya gelmektedir. Bu çalışmada, TDT üyesi ülkelerdeki İslami bankacılık faaliyetleri karşılaştırmalı olarak değerlendirilmektedir. İslami bankacılık, faizsiz finansman sağlayan ve İslam hukukuna uygun faaliyet gösteren bir sistemdir. Bu sistem, kâr-zarar ortaklığı (mudaraba ve muşaraka), mal ve hizmet alım satımı (murabaha), sukuk (kira sertifikası, İslami tahvil) ve kira (icara) gibi yöntemlerle finansman sağlamaktadır. Araştırmada, literatür taraması, ülke raporları ve finansal analizler kullanılarak İslami bankacılıkla ilgili mevcut düzenlemeler ve uygulamalar incelenmiştir. Veriler, ülkelerin yasal çerçeveleri, bankacılık sektörü raporları gibi nitel ve nicel yöntemlerle toplanmış ve analiz edilmiştir. Bulgular, TDT üyesi ülkelerin İslami bankacılık gelişmişlik düzeylerinin farklılık gösterdiğini ortaya koymaktadır. Türkiye ve Kazakistan bu alanda daha ileri seviyedeyken, Azerbaycan ve Özbekistan gelişme aşamasındadır. Kırgızistan ise mikrofinans ve küçük ölçekli İslami finans hizmetleriyle büyümeye çalışmaktadır. Nüfusunun büyük bir bölümü Müslüman olan TDT üyesi ülkelerde, İslami bankacılık faaliyetlerinin geliştirilmesi ve yaygınlaştırılması bölgesel kalkınmaya ve finansal entegrasyona önemli katkılar sağlayacaktır. Ayrıca, İslami finans ürünlerinin kullanımı, bankaların ekonomik performansını ve finansal istikrarını artırarak sürdürülebilir büyümeye katkıda bulunma potansiyeline sahiptir.

Keywords

• Türk Devletleri Teşkilatı
• İslami Finans
• İslami Bankacılık

References

1. Abduh, M., & Omarov, D. (2013). Muslims’ awareness and willingness to promote Islamic banking in Kazakhstan. Journal of Islamic Banking and Finance, 30(1), 16-24. https://www.researchgate.net/profile/Muhamad-Abduh/publication/267642518_Muslim's_Awareness_and_Willingness_to_Patronize_Islamic_Banking_in_Kazakhstan/links/54574d050cf26d5090a9abfb/Muslims-Awareness-and-Willingness-to-Patronize-Islamic-Banking-in-Kazakhstan.pdf
2. Ahmed, H. (2010). Islamic finance at a crossroads: The global financial crisis, challenges, and opportunities. Thunderbird International Business Review, 52(6), 551-556. https://doi.org/10.1002/tie.20394
3. AIFC (2024). Islamıc Fınance Country Report for Kazakhstan, IsDB.
4. Aliyev, X., & Gasimov. (2014). Banking in Azerbaijan economy: Conventional or Islamic banking? Journal of Qafqaz University: Economics and Administration, 2(2), 126-139. https://www.researchgate.net/publication/282847773_BANKING_IN_AZERBAIJAN_ECONOMY_CONVENTIONAL_OR_ISLAMIC_BANKING#fullTextFileContent
5. Atar, A., (2017). From the Past to the Present the General Situation of Islamic Banking in the World and Turkey. Journal of History Culture and Art Research, 6(4), 1029-1062. https://doi.org/10.7596/taksad.v6i4.1079
6. Bağış, B., & Yılmaz, M. (2020). The development and legal structure of Islamic finance in Türkiye. İnsan ve Toplum Bilimleri Araştırmaları Dergisi, 9(5), 3148-3173. https://doi.org/10.15869/itobiad.730814
7. Beck, T., Demirgüç-Kunt, A., & Merrouche, O. (2013). Islamic vs. conventional banking: Business model, efficiency, and stability. Journal of Banking & Finance, 37(2), 433-447. https://doi.org/10.1016/j.jbankfin.2012.09.016
8. Bekkin, R. (2008). Islamic finance in the former Soviet Union. Available at: www.ide.go.jp/library/Japanese/Publish/Reports/InterimReport/pdf/2008_04_07_shiryou.pdf

9. Canbaz, M. F. (2022). The development of Islamic banking in Türkiye from past to present. Uluslararası Bankacılık Ekonomi ve Yönetim Araştırmaları Dergisi, 5(1), 28-60. https://doi.org/10.52736/ubeyad.1086243
10. Cyberleninka. (n.d.). The Islamic financing methods in Azerbaijan. Accessed April 5, 2024, from https://cyberleninka.ru/article/n/the-islamic-financing-methods-in-azerbaijan
11. Dubko, S., Walter, W. & Kirchner, R. (2022), Banking Sector Monitor Uzbekistan, German Economic Team Policy Briefing, https://www.german-economic-team.com/wp-content/uploads/2022/08/GET_UZB_PB_05_2022_en.pdf?utm_source=chatgpt.com
12. Flashhabertv.com.tr (01.10.2024), Türk Devletleri, Ortak Harita İçin Bir Araya Geldi , https://flashhabertv.com.tr/gundem/turk-devletleri-ortak-harita-icin-bir-araya-geldi-151407/
13. Gasimli, V. (2023). Turkic States Economy. Nobel Yayınevi, Türkiye.
14. Global Banking and Finance Review. (2024). List of Islamic banks in Azerbaijan. Accessed July 4, 2024, from https://www.globalbankingandfinance.com/list-of-islamic-banks-in-azerbaijan/
15. Görmüş, Ş., Albayrak, A. & Yabanlı, A. (2019). Yaşayan ve Gelişen Katılım Bankacılığı, TKBB Published, İstanbul.
16. Hoggarth, D. (2016). The rise of Islamic finance: Post-colonial market building in Central Asia and Russia. International Affairs, 92(1), 115-136. https://doi.org/10.1111/1468-2346.12508
17. IFSB. (2024). Data & Metadata. Accessed October 2, 2024, from https://www.ifsb.org/data-metadata/
18. IsDB (Islamic Development Bank). (2024a). IsDB member countries. Accessed March 4, 2024, from https://www.isdb.org/isdb-member-countries
19. IsDB. (2024b). Islamic Development Bank and Azerbaijan sign MoU on country engagement framework. Accessed April 4, 2024, from https://www.isdb.org/news/isdb-and-azerbaijan-sign-mou-on-country-engagement-framework
20. Islamic Financial Services Board (IFSB). (2023). Islamic financial services industry stability report. Kuala Lumpur, Malaysia, August.
21. Kapital Bank. (2024). News. Accessed July 4, 2024, from https://kapitalbank.uz/uz/press_center/news/11-iyun-2019-yil-xususiy-sektorni-rivojlantirish-bo-yicha-islom-korporatsiyasi-xsrik-bankda-islomiy-/
22. Kevser, M. (2020). A review of the development of participation banking in Türkiye: Analysis of the period 2015-2019. Avrasya Sosyal ve Ekonomi Araştırmaları Dergisi, 7(6), 116-127. https://dergipark.org.tr/tr/download/article-file/1816570
23. Khan, M. M., & Bhatti, M. I. (2008). Development in Islamic banking: A financial risk-allocation approach. The Journal of Risk Finance, 9(1), 40-51. https://doi.org/10.1108/15265940810842401
24. Koçak, E. (2018). Islamic finance and economic growth: An econometric application for Türkiye. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 51, 67-91. https://doi.org/10.18070/erciyesiibd.440612
25. Kurash, N. P., Makysh, S. B., & Kantoroeva, G. K. (2021). Prospects and opportunities for the development of Islamic finance in Kazakhstan: Opening Islamic windows. https://doi.org/10.32523/2789-4320-2021-4-181-192
26. Mamedov, Z. F., Abbasbeyli, M., Valiev, E., & Vysov, E. (2020). Banking sector of Azerbaijan: Trends, problems, prospects. 60th International Scientific Conference on Economic and Social Development – XX International Social Congress (ISC 2020), 59-66, Moscow, 20-21 October 2020.
27. Muzafferova, V., & Muneeza, A. (2024). The challenges facing Islamic finance in Uzbekistan. EE Publisher, 286-307. https://doi.org/10.4337/9781035308705.00024
28. Nagayev, R., & Jahangir, R. (2022). Islamic finance in Central Asia and Russia. IKAM Country Reports 13, IKAM Publisher, Uskudar, Istanbul.
29. Nagimova, A. (2021). Islamic finance in the CIS countries. Academus Publishing. https://academuspub.com/temp/27c1f10a144fd10502907c3a21eb7ba9.pdf
30. Nagimova, A. (2023). Islamic finance in Kazakhstan: The view of experts. Journal of Islamic Accounting and Business Research, 14(8), 1195-1215. https://ideas.repec.org/a/eme/jiabrp/jiabr-09-2021-0265.html
31. Nagimova, A. Z. (2022). Islamic finance in the post-Soviet Central Asia and Transcaucasia: The evidence from Kyrgyzstan. Journal of Islamic Accounting and Business Research, 13(8), 1197-1215. https://doi.org/10.1108/JIABR-02-2021-0077
32. Nationalbank. (n.d.). Islamic finance general information. Accessed March 25, 2024, from https://nationalbank.kz/en/page/obshchaya-informaciya-islam-finans
33. Nazarov, N. N., & Sayfullaev, A. O. (2023). Significance of Islamic finance in the financial market of Uzbekistan. Academia Science Repository, 4(04), 132-139. Retrieved from http://academiascience.com/index.php/repo/article/view/3
34. Özgür, E. (2008). Katılım Bankalarının Finansal Etkinliği, Afyon Kocatepe Üniversitesi İİBF Dergisi, C. 10, Sayı: 1, pp. 159-175. https://dergipark.org.tr/en/download/article-file/19001
35. Sabi, M. (2015). Supply of Islamic microfinance in Central Asia: The case study of Tajikistan and Kyrgyzstan. ISRA International Journal of Islamic Finance, 7(2), 9-27. https://journal.inceif.edu.my/index.php/ijif/article/view/204
36. TKBB. (2024a). Türkiye banking data. Accessed April 4, 2024, from http://www.tkbb.org.tr/veripetegi-detay/5
37. TKBB. (2024b). Türkiye banking data. Accessed April 4, 2024, from http://www.tkbb.org.tr/veripetegi-detay/9
38. TKBB. (2024c). International collaborations and agreements. Accessed July 4, 2024, from https://tkbb.org.tr/faaliyetler/uluslararasi-anlasmalarimiz/uba-iliskiler
39. Türk Devletleri Teşkilatı. (2024). Organizational history. Accessed March 20, 2024, from https://www.turkicstates.org/tr/organizasyon-tarihcesi
40. Türkan, Y. (2019). 33 Soruda İslami Finans ve Bankacılık. İmaj Yayınevi.
41. Türkan, Y. (2021). Katılım bankaları ile krizlerden karlı çıkmak. In Uluslararası İktisadi ve İdari Bilimler Kongresi: Krizler, Belirsizlikler ve Arayışlar (pp. 11-13). Bingöl. https://iibfkongre.bingol.edu.tr/media/17030/ozet-metin-kitabi.pdf
42. Vikentievna, Y. L., Turatovna, K. M., & Atantayevich, A. I. (2023). Country specific profile of the Kyrgyz Republic. In V. Gasimli (Ed.), Turkic States Economy (pp. 59-66). Nobel Yayınevi, Türkiye.
43. Wikipedia. (2024). Turkish states organization. Accessed March 21, 2024, from https://tr.wikipedia.org/wiki/T%C3%BCrk_Devletleri_Te%C5%9Fkilat%C4%B1
44. World Bank Group. DataBank. Accessed April 5, 2024, from https://databank.worldbank.org/
45. Xalq Gazetesi. (2024). Perspectives of Islamic banking in Azerbaijan. Accessed April 7, 2024, from https://xalqqazeti.az/az/iqtisadiyyat/islam-bankciliginin-azerbaycanda-perspektivleri
46. Zhoraev, A., & Yüksek, A. (2021). Challenges for Islamic banking industry: The Kyrgyz Republic experience. Ondokuz Mayıs Üniversitesi İlahiyat Fakültesi Dergisi, 50(June), 713-730. https://doi.org/10.17120/omuifd.901846