Exploring the Demand Side Issues in Participation Banking in Turkey: Questionnaire Survey on Current Issues and Proposed Solutions

Öz

Since 1980s, Islamic finance has exhibited a significant growth in Turkey, whereas problems related to regulation, competition, products and the public perception of Islamic finance institutions continues to exist. This paper aims to discover the current issues and to develop solutions. In addition to our previous research, an extensive questionnaire is utilized to help mature our opinions. Questionnaires were sent to 1045 businessmen to investigate the perception of Islamic finance in Turkey. Findings indicate that problems can be classified into four main categories: problems related to the interpretation and implementation of Islamic principles and rules, problems related to competition with conventional banks, problems related to local law and regulations, and problems related to human capital and corporate governance. Possible solutions include developing a sound understanding of Islamic economics, making the Islamic supervision process more effective and transparent, easing the regulations for Islamic financial institutions to develop and implement original structures based on Islamic principles, providing fair competition opportunity with the conventional banks, promoting education programs especially in universities both to develop the theoretical framework and to provide qualified human capital to the industry.* Professor, Sakarya University, Department of Public Finance. Sakarya, Turkey** Corresponding author - Associate Professor, Sakarya University, Department of Business Administration. Sakarya, Turkey; Contact: [e-mail]*** Associate Professor, Sakarya University, Department of Business Administration. Sakarya, Turkey

Anahtar Kelimeler

• Islamic Economics, Islamic Finance, Participation Banks, Religious Businessmen

Kaynakça

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