Year 2019, Volume 5 , Issue 3, Pages 45 - 64 2019-11-30

Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey

Mohammed ALKHAWAJA [1] , Şakir GÖRMÜŞ [2]


This study aims to identify variables which determine credit risk in Islamic and Conventional banks. Panel data fixed effect model employed to analyze which belongs to three Islamic Banks in Turkey for the period 2008 Q1 to 2017 Q4. While for conventional banks, previous studies that has been conducted in Turkey used to compare Islamic to Conventional banks (CB). Non-performing Loans (NPL) ratio was used as a proxy for credit risk. Result from fixed effect model showed that NPL in Islamic Banks is positively affected by Loan Loss Provision and Proportion of Loans to Deposits, and it is negatively affected by Assets Size. While literature showed that conventional bank’s credit risk is positively affected by Net Interest Margin, Loan Loss Provision, and Capital Adequacy Ratio and it is negatively affected by Proportion of Loan to Deposits, Proportion of Loans to Assets and Size. There were clear differences between both Islamic and Conventional banks related to all variables of study except Loan Loss Provision and Proportion of Loan to Assets ratios.

Credit Risk, Non-performing Loans, Islamic Banks, Conventional Banks
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Primary Language en
Subjects Economics
Published Date Kasım
Journal Section Articles
Authors

Author: Mohammed ALKHAWAJA
Institution: SAKARYA UNIVERSITY
Country: Andorra


Author: Şakir GÖRMÜŞ
Institution: SAKARYA ÜNİVERSİTESİ
Country: Turkey


Dates

Publication Date : November 30, 2019

Bibtex @research article { ijisef634607, journal = {International Journal of Islamic Economics and Finance Studies}, issn = {2149-8393}, eissn = {2149-8407}, address = {}, publisher = {Politik Ekonomik ve Sosyal Araştırmalar Merkezi}, year = {2019}, volume = {5}, pages = {45 - 64}, doi = {10.25272/ijisef.634607}, title = {Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey}, key = {cite}, author = {ALKHAWAJA, Mohammed and GÖRMÜŞ, Şakir} }
APA ALKHAWAJA, M , GÖRMÜŞ, Ş . (2019). Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey. International Journal of Islamic Economics and Finance Studies , 5 (3) , 45-64 . DOI: 10.25272/ijisef.634607
MLA ALKHAWAJA, M , GÖRMÜŞ, Ş . "Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey". International Journal of Islamic Economics and Finance Studies 5 (2019 ): 45-64 <https://dergipark.org.tr/en/pub/ijisef/issue/50402/634607>
Chicago ALKHAWAJA, M , GÖRMÜŞ, Ş . "Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey". International Journal of Islamic Economics and Finance Studies 5 (2019 ): 45-64
RIS TY - JOUR T1 - Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey AU - Mohammed ALKHAWAJA , Şakir GÖRMÜŞ Y1 - 2019 PY - 2019 N1 - doi: 10.25272/ijisef.634607 DO - 10.25272/ijisef.634607 T2 - International Journal of Islamic Economics and Finance Studies JF - Journal JO - JOR SP - 45 EP - 64 VL - 5 IS - 3 SN - 2149-8393-2149-8407 M3 - doi: 10.25272/ijisef.634607 UR - https://doi.org/10.25272/ijisef.634607 Y2 - 2019 ER -
EndNote %0 Uluslararası İslam Ekonomisi ve Finansı Araştırmaları Dergisi Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey %A Mohammed ALKHAWAJA , Şakir GÖRMÜŞ %T Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey %D 2019 %J International Journal of Islamic Economics and Finance Studies %P 2149-8393-2149-8407 %V 5 %N 3 %R doi: 10.25272/ijisef.634607 %U 10.25272/ijisef.634607
ISNAD ALKHAWAJA, Mohammed , GÖRMÜŞ, Şakir . "Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey". International Journal of Islamic Economics and Finance Studies 5 / 3 (November 2019): 45-64 . https://doi.org/10.25272/ijisef.634607
AMA ALKHAWAJA M , GÖRMÜŞ Ş . Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey. IJISEF. 2019; 5(3): 45-64.
Vancouver ALKHAWAJA M , GÖRMÜŞ Ş . Credit Risk Management: A Comparative Study between Islamic and Conventional Banks in Turkey. International Journal of Islamic Economics and Finance Studies. 2019; 5(3): 64-45.