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Issues and Challenges of Participation Banking in Turkey: An Empirical Investigation القضايا والتحديات التي تواجه المصارف التشاركية في تركيا: دراسة ميدانية

Author

Listed:
  • Fatma Sayar

    (PhD student, Institute of Social Sciences, Sakarya University, Turkey)

  • Tawfik Azrak

    (Assistant Professor, Faculty of Islamic Studies, Social Science University of Ankara, Turkey)

Abstract

The purpose of this paper is to provide empirical analysis of the issues and challenges faced by the participation banks in Turkey, based on the perception of employees of these banks. The study focuses on factors that constrains growth of participation banking in the financial sector. These factors have been arranged in six categories: (i) legal and regulatory framework, (ii) management issues, (iii) Shariah( ) governance, (iv) industrial issues, (v) the perception of society, (vi) and risks. The survey study has flagged the lack of legal regulations (i.e., an enabling environment), and the failure to implement Shariah standards as the main challenges. يهدف البحث إلى تقديم دراسة تطبيقية عن القضايا والتَّحديات التي تواجه المصارف التشاركية في تركيا من منظور وخبرة موظفي هذه المصارف. يُركز البحث على العوامل التي تحول دون زيادة نمو وانتشار هذا النوع من المصارف في القطاع المالي التركي. تم تصنيف هذه العوامل ضمن ستة بنود رئيسة، كالتالي: (1) - الإطار القانوني والتنظيمي، (2) الإجراءات الإدارية، (3) الحوكمة الشرعية، (4) القضايا الداخلية المتعلقة بصناعة التمويل الإسلامي، (5) وجهة نظر المجتمع، (6) المخاطر. خَلُص البحث إلى أن من أهم التحديات التي تواجه نمو وانتشار المصارف التشاركية في تركيا أمرين أساسين: هما الافتقار إلى اللوائح القانونية (البيئة القانونية المُناسبة)، والقصور في تطبيق المعايير الشرعية المُنظمة لعمل هذا النوع من المصارف.

Suggested Citation

  • Fatma Sayar & Tawfik Azrak, 2021. "Issues and Challenges of Participation Banking in Turkey: An Empirical Investigation القضايا والتحديات التي تواجه المصارف التشاركية في تركيا: دراسة ميدانية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 34(2), pages 55-80, July.
    • Handle: RePEc:abd:kauiea:v:34:y:2021:i:2:no:4:p:55-80
    DOI: 10.4197/Islec.34-2.4
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    References listed on IDEAS

    as
    1. Frank E. Vogel, 2010. "Islamic Finance: Personal and Enterprise Banking," Chapters, in: M. Fahim Khan & Mario Porzio (ed.), Islamic Banking and Finance in the European Union, chapter 3, Edward Elgar Publishing.
    2. Ali Polat & Mehmet Yesilyaprak & Raci Kaya, 2014. "Understanding Islamic Bank Selection of Customers: A Field Research from Turkish Participation Banks," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(4), pages 22-38, October.
    3. Ahmad, Ausaf & Khan, Tariqullah & Iqbal, Munawar, 1998. "Challenges Facing Islamic Banking (Occasional Paper)," Occasional Papers 1998, The Islamic Research and Teaching Institute (IRTI).
    4. Mehmet Asutay, 2013. "The development of Islamic banking in Turkey: regulation, performance and political economy," Chapters, in: Valentino Cattelan (ed.), Islamic Finance in Europe, chapter 15, pages 213-227, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Participation banking; Legal and regulatory framework; Turkey; Challenges البنوك التشاركية، الإطار القانوني والتنظيمي، تركيا، التحديات.;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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