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

Authors

  • Metin Aktaş Nigde University

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.

Keywords: Participation banks; conventional banks; economic crisis; stability

JEL Classifications: G21

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Author Biography

Metin Aktaş, Nigde University

Faculty of Economics and Administrative Sciences,Department of Business Administration,Major of Finance

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Published

2012-12-12

How to Cite

Aktaş, M. (2012). Stability of the Participation Banking Sector Against the Economic Crisis in Turkey. International Journal of Economics and Financial Issues, 3(1), 180–190. Retrieved from http://econjournals.com/index.php/ijefi/article/view/367

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Articles