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Stability of the Participation Banking Sector Against the Economic Crisis in Turkey

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  • Metin AKTAS

    (Department of Business Administration, Faculty of Economics and Business, Nigde University, Turkey.)

Abstract

The purpose of this article is to analyze whether participating banking sector is more stable than conventional banking sector during the global economic crisis. The main point is that which banking system are financially less affected from the global economic crisis. For this anlysis, we have used trend analysis method for 2006-2011 on yearly basis. In this study, yearly financial ratios of conventional and participating banking sectors were utilized. Financial ratios can be sorted as profitability, liquidity, risknesss and asset quality ratios. Results of the study show that participating banking sector is more stable than conventional banking sector in terms of profitability, riskiness and liquidity during the analysis term which includes 2008 global economic crisis. In addition, both sectors are almost similiar and stable in terms of asset quality.

Suggested Citation

  • Metin AKTAS, 2013. "Stability of the Participation Banking Sector Against the Economic Crisis in Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 180-190.
    • Handle: RePEc:eco:journ1:2013-01-18
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    References listed on IDEAS

    as
    1. Dr. Waheed Akhter & Ali Raza & Orangzab & Muhammad Akram, 2011. "Efficiency and Performance of Islamic Banking: The Case of Pakistan," Far East Journal of Psychology and Business, Far East Research Centre, vol. 2(4), pages 54-70, February.
    2. Asli Demirguk-Kunt & Thorsten Beck & Ouarda Merrouche, 2013. "Islamic Banking versus Conventional Banking: Business model, Efficiency, and Stability," Post-Print hal-01638080, HAL.
    3. Donsyah Yudistira, 2004. "Efficiency of Islamic Banks: an Empirical Analysis of 18 Banks," Finance 0406007, University Library of Munich, Germany.
    4. Beck, Thorsten & Demirgüç-Kunt, Asli & Merrouche, Ouarda, 2013. "Islamic vs. conventional banking: Business model, efficiency and stability," Journal of Banking & Finance, Elsevier, vol. 37(2), pages 433-447.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Participation banks; conventional banks; economic crisis; stability;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

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