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FINANCIAL STABILITY OF ISLAMIC PARTICIPATION BANKS IN TURKEY

Year 2016, Volume: 7 Issue: 2, 8 - 32, 01.01.2016

Abstract

Since Global Financial Crisis, the performances of Islamic banks and conventional banks have been an area of interest due to the difference in the principles of financial intermediation. Another area of interest is the financial stability characteristic of Islamic banks stemming from their business model. With the strong growth projection of Islamic banking in global finance, their soundness becomes of an increasing concern. The main goal of the article is to investigate whether Islamic participation banks in Turkey are more stable than conventional banks using Z-Score values in a panel data framework

References

  • Bashir, H.A. (2000). Determinants of profitability in Islamic Banks: Some evidence from the Middle East. Islamic Economic Studies., 11(1): 31- 57.
  • Beck, T., Demirgüç-Kunt, A., & Merrouche, O. (2013). Islamic vs. conven- tional banking: Business model, efficiency and stability. Journal of Banking & Finance, 37(2), 433-447.
  • Belouafi, A., Bourakba, C., & Saci, K. (2015). Islamic finance and financial stability: A review of the literature. Financial Stability and Risk Man- agement in Islamic Financial Institutions, 21.
  • Boumediene, A., & Caby, J. (2009). The stability of Islamic banks during the subprime crisis. Available at SSRN 1524775.
  • Boyd, J. H., & Graham, S. L. (1986). Risk, Regulation, and Bank Hold- ing Company Expansion into Nonbanking. Federal Reserve Bank of Minneapolis Quarterly Review, Spring 1986, 2-17.
  • Chong, B. S., & Liu, M. H. (2009). Islamic banking: interest-free or inter- est-based?. Pacific-Basin Finance Journal, 17(1), 125-144.
  • Čihák, M., & Hesse, H. (2008). Islamic banks and financial stability: An empirical analysis. IMF Working Papers, 1-29.
  • FSB. (2010). Intensity and effectiveness of SIFI supervision. Recommenda- tions for enhanced supervision, 2.
  • Gamaginta and Rokhim R. (2015). The stability comparison between Islam- ic banks and conventional banks: evidence in Indonesia. Financial Stability and Risk Management in Islamic Financial Institutions, 101.
  • Haron, S. (1996). Competition and other external determinants of the profit- ability of Islamic banks. Islamic Economic Studies. 4(1): 49-64.
  • Hasan, M. M., & Dridi, J. (2010). The effects of the global crisis on Islamic and conventional banks: A comparative study. IMF Working Papers, 1-46.
  • Hussain, M. M., Shahmoradi, A., & Turk, R. (2015). An Overview of Islamic Finance (No. 15-120). International Monetary Fund Working Paper Series.
  • Iqbal, M., & Molyneux, P. (2005). Thirty years of Islamic banking: history, performance, and prospects. Journal of King Abdulaziz University-Is- lamic Economics, Vol. 19, No. 1, pp. 37-39
  • Kammer, M. A., Norat, M. M., Pinon, M. M., Prasad, A., Towe, M. C. M., & Zeidane, M. Z. (2015). Islamic Finance: Opportunities, Challeng- es, and Policy Options (No. 15). International Monetary Fund.
  • Parlakkaya, R. Ç., & Akten, S. (2011). Finansal rasyoların katılım bankaları ve geleneksel bankalar arasında bir tasnif aracı olarak kullanımı: Tür- kiye örneği. Ege Akademik Bakış, 11(3), 397-405.
  • Pradhan, R. (2014). Z Score Estimation for Indian Banking Sector. Interna- tional Journal of Trade, Economics and Finance, 5(6), 516.
  • Rahim, S. R. M., & Zakaria, R. H. (2013). Comparison on stability between Islamic and conventional banks in Malaysia. Journal of Islamic Eco- nomics, Banking and Finance, 9(3), 131-149.
  • Rajhi, W., & Hassairi, S. A. (2013). Islamic banks and financial stability: a comparative empirical analysis between MENA and southeast Asian countries. Region et Developpement, 37, 149-177.
  • Sakarya, B., & Kaya, Y. T. (2013). Türk Bankacılık Sektöründe Katılım ve Mevduat Bankaların Performans Farklılaşması. In EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey (No. 215). Ekonomik Yaklasim Association.
  • Shahid, M. A., & Abbas, Z. (2012). Financial stability of Islamic banking in Pakistan: An empirical study. African Journal of Business Manage- ment, 6(10), 3706-3714.
  • Standard & Poor’s. (2015) “Credit FAQ: What’s Ahead For Emerging Market Sovereigns in 2016”, December 10, 2015.
  • The Islamic Financial Services Board (IFSB). (2015). Islamic Financial Ser- vices Industry Stability Report 2015, May 2015,http://ifsb.org/ docs/2015-05-20_IFSB%20Islamic%20Financial%20Services%20 Industry%20Stability%20Report%202015_final.pdf
  • Thomson Reuters (2015) “Turkey Islamic Finance Report 2014.
  • Zaher, T. S. & Kabir Hassan, M. (2001). A Comparative Literature Survey of Islamic Finance and Banking. Financial Markets, Institutions & Instruments, Vol. 10: 155–199. (DOI: 10.1111/1468-0416.00044).
  • Lepetit, L., & Strobel, F. (2013). Bank insolvency risk and time-varying Z-score measures. Journal of International Financial Markets, Insti- tutions and Money, 25, 73-87.

TÜRKİYE’DE İSLAMİ KATILIM BANKALARININ FİNANSAL İSTİKRARI

Year 2016, Volume: 7 Issue: 2, 8 - 32, 01.01.2016

Abstract

Küresel Finans Krizinden itibaren İslami bankalar ile geleneksel bankaların performansları, finansal aracılık ilkelerindeki farklılık nedeniyle ilgi duyulan bir alan haline gelmiştir. Bir diğer ilgi alanı ise İslami bankaların iş modelinden kaynaklanan mali istikrar özelliğidir. Küresel finansta İslami bankacılığın güçlü büyüme projeksiyonu, İslami bankacılığın mali sağlamlığının daha çok ilgi çekmesine neden olmuştur. Bu bağlamda, bu makalenin amacı, Türkiye’deki İslami bankaların geleneksel bankalara göre daha istikrarlı olup olmadığını panel veri çerçevesinde Z-Skoru değerleri kullanarak incelemektir

References

  • Bashir, H.A. (2000). Determinants of profitability in Islamic Banks: Some evidence from the Middle East. Islamic Economic Studies., 11(1): 31- 57.
  • Beck, T., Demirgüç-Kunt, A., & Merrouche, O. (2013). Islamic vs. conven- tional banking: Business model, efficiency and stability. Journal of Banking & Finance, 37(2), 433-447.
  • Belouafi, A., Bourakba, C., & Saci, K. (2015). Islamic finance and financial stability: A review of the literature. Financial Stability and Risk Man- agement in Islamic Financial Institutions, 21.
  • Boumediene, A., & Caby, J. (2009). The stability of Islamic banks during the subprime crisis. Available at SSRN 1524775.
  • Boyd, J. H., & Graham, S. L. (1986). Risk, Regulation, and Bank Hold- ing Company Expansion into Nonbanking. Federal Reserve Bank of Minneapolis Quarterly Review, Spring 1986, 2-17.
  • Chong, B. S., & Liu, M. H. (2009). Islamic banking: interest-free or inter- est-based?. Pacific-Basin Finance Journal, 17(1), 125-144.
  • Čihák, M., & Hesse, H. (2008). Islamic banks and financial stability: An empirical analysis. IMF Working Papers, 1-29.
  • FSB. (2010). Intensity and effectiveness of SIFI supervision. Recommenda- tions for enhanced supervision, 2.
  • Gamaginta and Rokhim R. (2015). The stability comparison between Islam- ic banks and conventional banks: evidence in Indonesia. Financial Stability and Risk Management in Islamic Financial Institutions, 101.
  • Haron, S. (1996). Competition and other external determinants of the profit- ability of Islamic banks. Islamic Economic Studies. 4(1): 49-64.
  • Hasan, M. M., & Dridi, J. (2010). The effects of the global crisis on Islamic and conventional banks: A comparative study. IMF Working Papers, 1-46.
  • Hussain, M. M., Shahmoradi, A., & Turk, R. (2015). An Overview of Islamic Finance (No. 15-120). International Monetary Fund Working Paper Series.
  • Iqbal, M., & Molyneux, P. (2005). Thirty years of Islamic banking: history, performance, and prospects. Journal of King Abdulaziz University-Is- lamic Economics, Vol. 19, No. 1, pp. 37-39
  • Kammer, M. A., Norat, M. M., Pinon, M. M., Prasad, A., Towe, M. C. M., & Zeidane, M. Z. (2015). Islamic Finance: Opportunities, Challeng- es, and Policy Options (No. 15). International Monetary Fund.
  • Parlakkaya, R. Ç., & Akten, S. (2011). Finansal rasyoların katılım bankaları ve geleneksel bankalar arasında bir tasnif aracı olarak kullanımı: Tür- kiye örneği. Ege Akademik Bakış, 11(3), 397-405.
  • Pradhan, R. (2014). Z Score Estimation for Indian Banking Sector. Interna- tional Journal of Trade, Economics and Finance, 5(6), 516.
  • Rahim, S. R. M., & Zakaria, R. H. (2013). Comparison on stability between Islamic and conventional banks in Malaysia. Journal of Islamic Eco- nomics, Banking and Finance, 9(3), 131-149.
  • Rajhi, W., & Hassairi, S. A. (2013). Islamic banks and financial stability: a comparative empirical analysis between MENA and southeast Asian countries. Region et Developpement, 37, 149-177.
  • Sakarya, B., & Kaya, Y. T. (2013). Türk Bankacılık Sektöründe Katılım ve Mevduat Bankaların Performans Farklılaşması. In EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey (No. 215). Ekonomik Yaklasim Association.
  • Shahid, M. A., & Abbas, Z. (2012). Financial stability of Islamic banking in Pakistan: An empirical study. African Journal of Business Manage- ment, 6(10), 3706-3714.
  • Standard & Poor’s. (2015) “Credit FAQ: What’s Ahead For Emerging Market Sovereigns in 2016”, December 10, 2015.
  • The Islamic Financial Services Board (IFSB). (2015). Islamic Financial Ser- vices Industry Stability Report 2015, May 2015,http://ifsb.org/ docs/2015-05-20_IFSB%20Islamic%20Financial%20Services%20 Industry%20Stability%20Report%202015_final.pdf
  • Thomson Reuters (2015) “Turkey Islamic Finance Report 2014.
  • Zaher, T. S. & Kabir Hassan, M. (2001). A Comparative Literature Survey of Islamic Finance and Banking. Financial Markets, Institutions & Instruments, Vol. 10: 155–199. (DOI: 10.1111/1468-0416.00044).
  • Lepetit, L., & Strobel, F. (2013). Bank insolvency risk and time-varying Z-score measures. Journal of International Financial Markets, Insti- tutions and Money, 25, 73-87.
There are 25 citations in total.

Details

Primary Language Turkish
Journal Section Research Article
Authors

Burçhan Sakarya This is me

Publication Date January 1, 2016
Published in Issue Year 2016 Volume: 7 Issue: 2

Cite

Chicago Sakarya, Burçhan. “TÜRKİYE’DE İSLAMİ KATILIM BANKALARININ FİNANSAL İSTİKRARI”. Ortadoğu Etütleri 7, no. 2 (January 2016): 8-32.

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