Relationship between Rate of Returns on Foreign Exchange Islamic and Conventional Deposits in Turkey
Öz
The causal relationship between the rates of
return on deposits of Islamic banks and deposits of conventional banks in an economy
with dual banking systems is a significant area of study in the literature. While
studying this causal relationship, vast majority of the existing studies consider
domestic currency deposits. In this paper instead of domestic currency
deposits, I consider foreign exchange currency deposits. By employing Toda-Yamamoto
causality analysis, a causality relationship for all the maturity groups is
found, but not for the 12-months maturity. For dollar accounts, the causality
relationship between rate of returns of Islamic and Conventional banking is
found to be two-way. For Euro accounts, this causality relationship is found to
be one way, where the interest rate of conventional banks is Granger cause of profit
share of Islamic banks.
Anahtar Kelimeler
Profit Share,Interest Rate,Foreign Exchange Deposits,Islamic Banking,Turkish Banking System
Kaynakça
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