THE COMPETITION BETWEEN PARTICIPATION AND CONVENTIONAL BANKS IN TURKEY: A QUANTITATIVE STUDY

Year 2023, Volume: 13 Issue: 26, 440 - 466, 30.11.2023

Ali Rıza Solmaz , Özgür Bayram Soylu

https://doi.org/10.53092/duiibfd.1214359

Abstract

Participation banks, which carry out transactions based on an interest-free banking model, form fund pools through current and participation accounts. These funds are made available to the economic decision units that need financing or tend to save by using a profit share approach. The interest-free finance system, which is a risk-sharing model, has a significant function in minimizing possible instability. The essential motivation of this study is to measure the level of competition between participation banks and conventional banks in the presence of households. For this purpose, quantitative research was carried out with the participation of 1145 people in the NUTS-2 region of the Turkey Statistical Regional Units Classification, with an error margin of ± 2.90% and a 95% confidence interval . The results of the research indicate that the savings preferences of the households are in favor of traditional instruments, the search for an interest-free investment tool continues, the interest sensitivity of the households in terms of financial external dependency, and the brand awareness of participation banks is low. It has been determined that the low level of awareness of participation banks is a significant disadvantage in competition with conventional banks.

Keywords

Participation Bank, Conventional Bank, Quantitative Analysis

TÜRKİYE’DE KATILIM BANKALARI VE KONVANSİYONEL BANKALAR ARASINDAKİ REKABET ÜZERİNE NİCEL ARAŞTRMA

Abstract

Faizsiz bankacılık modeline göre işlem yapan katılım bankaları, cari ve katılma hesapları aracılığıyla fon havuzları oluşturmaktadır. Bu fonlar, finansmana ihtiyaç duyan veya tasarruf etme eğiliminde olan ekonomik karar birimlerinin kullanımına kâr payı yaklaşımı ile sunulmaktadır. Bir risk paylaşım modeli olan faizsiz finans sistemi, olası istikrarsızlıkların en aza indirilmesinde önemli bir işleve sahiptir. Bu çalışmanın temel motivasyonu, katılım bankaları ile konvansiyonel bankalar arasındaki rekabet düzeyini hanehalklarının varlığında ölçmektir. Bu amaçla, Türkiye İstatistiki Bölge Birimleri Sınıflandırmasının İBBS-2 bölgesinde yer alan 1145 kişinin katılımıyla ± %2,90 hata payı ve %95 güven aralığı ile nicel araştırma gerçekleştirilmiştir . Araştırma sonuçları, hanehalklarının tasarruf tercihlerinin geleneksel araçlardan yana olduğunu, faizsiz yatırım aracı arayışlarının devam ettiğini, hanehalklarının finansal dışa bağımlılık açısından faiz duyarlılığının ve katılım konusunda marka bilinirliğinin düşük olduğunu göstermektedir. Katılım bankalarının bilinç düzeyinin düşük olmasının konvansiyonel bankalarla rekabette önemli bir dezavantaj olduğu tespit edilmiştir.

Keywords

Katılım Bankası, Geleneksel Banka, Nicel Analiz

References

• Abdul-Rahman, Y. (2010). The art of Islamic banking and finance: tools and techniques for community-based banking. John Wiley & Sons.
• Ahmed, S., Islam, R. & Mohiuddin, M. (2017). Service quality, Shariah compliance and customer satisfaction of Islamic banking Services in Malaysia. Turkish Journal of Islamic Economics, 4(2), 71-82.
• Ahmed, S., Mohiuddin, M., Rahman, M., Tarique, K.M. & Azim, M. (2021). The impact of Islamic Shariah compliance on customer satisfaction in Islamic banking services: mediating role of service quality. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-11-2020-0346.
• Akhtar, S. (2010). Islamic banks: resilience and stability — Not immune from crisis. In A. Venardos (Eds.), Current Issues in Islamic Banking and Finance, (ss. 229-254). World Scientific Publishing.
• Alandejani, M. & Asutay, M. (2017). Nonperforming loans in the GCC banking sectors: does the Islamic finance matter? Research in international business and finance, 42(C), 832-854.
• Alpay, S. & Hassan, M. K. (2007). A comparative efficiency analysis of interest free financial institutions and conventional banks: a case study on Turkey. Working Paper No. 0714.
• Amin, M. & Isa, Z. (2008). An examination of the relationship between service quality perception and customer satisfaction: a SEM approach towards Malaysian Islamic banking. International journal of Islamic and middle eastern finance and management, 1(3), 191-209.
• Ascarya & Yumanita, D. (2008). Comparing the efficiency of Islamic banks in Malaysia and Indonesia. Bulletin of Monetary Economics and Banking, Bank Indonesia, 11(2), 1-27.
• Ashraf, S., Robson, J., & Sekhon, Y. (2015). Consumer trust and confidence in the compliance of Islamic banks. Journal of Financial Services Marketing, 20(2), 133-144.
• Bashir, A. M. (1999). Risk and profitability measures in Islamic banks: the case of two Sudanese banks. Islamic Economic Studies, 6(2), 1-24.
• Cihak, M. & Hesse, H. (2008). Islamic banks and financial stability: an empirical analysis. IMF Working Papers No. WP/08/16.
• Dilber, C. & Hatipoğlu, M. (2022). Do the Loans of Conventional Banks Crowding-Out the Loans of Participation Banks? Muhasebe ve Finans İncelemeleri Dergisi, 5(2), 117-122.
• El-Gamal, M. (2001). An economic explication of the prohibition of gharar in classical Islamic jurisprudence. Islamic Economic Studies, 8(2).
• Ghassan, Hassan B. & Taher, Farid B. (2015). financial stability of Islamic and conventional banks in Saudi Arabia: evidence using pooled and panel models. MPRA Paper No. 75460.
• Harrison, T. & Ibrahim, E. (2016). Islamic finance: principles, performance and prospects. Palgrave Macmillan.
• Hassan, K. (2006). The X-efficiency in Islamic banks. Islamic Economic Studies, 13(2), 49-78.
• Iqbal, M. & Molyneux, P. (2005). Thirty years of Islamic Banking. Palgrave Macmillan.
• Karahan, H. & Ersoy, H. (2016). Faizsiz finansın temel prensipleri ile Türkiye'de reel kesimde kullanılması. Journal of Finance Letters, 105(93), 93-114.
• Kettel, B. (2011). Introduction to Islamic banking and finance. John Wiley & Sons.
• Khattak, N. A. & Rehman, K. (2010). Customer satisfaction and awareness of Islamic banking system in Pakistan. African Journal of Business Management, 4(5), 662-671.
• Musa, H., Natorin, V., Musova, Z., & Durana, P. (2020). Comparison of the efficiency measurement of the conventional and Islamic banks. Oeconomia Copernicana, 11(1), 29–58.
• Naser, K. & Moutinho, L. (1997). Strategic marketing management: the case of Islamic banks. International Journal of Bank Marketing, 15(6), 187-203.
• Rahim, A., Rahman, A., & Rosman, R. (2013). Efficiency of Islamic banks: A comparative analysis of MENA and Asian countries. Journal of Economic Cooperation and Development, 34(1), 63-92.
• Rehman, A., Aslam, E. & Iqbal, A. (2022). Intellectual capital efficiency and bank performance: evidence from Islamic Banks. Borsa İstanbul Review, 22(1), 113-121.
• Rosman, R., Wahab, N. A., & Zainol, Z. (2014). Efficiency of Islamic banks during the financial crisis: an analysis of Middle Eastern and Asian countries. Pacific-Basin Finance Journal, 28, 76-90.
• Schoon, N. (2016). Modern Islamic banking: products and processes in practice. John Wiley & Sons.
• Sufian, F., Mohamad, A. M. N. & Muhamed-Zulkhibri, A. M. (2008). The efficiency of Islamic banks: empirical evidence from the MENA and Asian Countries Islamic banking sectors. MPRA paper 19072.
• Sun, P. H., Mohamad, S., & Ariff, M. (2017). Determinants driving bank performance: a comparison of twotypes of banks in the OIC. Pacific-basin finance journal, 42, 193–203.
• Surjaatmadja, S. & Adriansyah, A. (2016). Does Islamic banking have a competitive advantage over conventional banking in Indonesia?: a study of perspectives. Social Sciences & Humanities, 24(S): 205-214.
• Takan, M., & Acar, M. (2018). Bankacılık teori, uygulama ve yönetim. Nobel Publication Group.
• TKBB, (Participation Banks Association of Turkiye), (2022). Interest-free finance dictionary. Retrieved 04 March 2022, from https://tkbb.org.tr/sayfa/detay/yayinlar/faizsiz-finans-sozlugu-508697.
• Turkish Diyanet Foundation, (2022). TDV encyclopedia of Islam. Retrieved March 3, 2022, from https://islamansiklopedisi.org.tr/mudarebe
• Venardos, A. M. (2010). Current issues in Islamic banking and finance. World Scientific Publishing.
• Visser, H. (2009). Islamic finance: principles and practice. Edward Elgar Pub.
• Warde, I. (2000). Islamic finance in the global economy. Edinburgh University Press.
• Yudistira, D., (2004). Efficiency in Islamic banking: an empirical analysis of eighteen banks. Islamic Economic Studies,12(1), 1-19.
• Zouari, G. & Abdelhedi, M. (2021). Customer Satisfaction in the Digital Era: Evidence from Islamic Banking. Journal of Innovation and Entrepreneurship, 10(9).