Research Article


DOI :10.26650/ISTJECON414809   IUP :10.26650/ISTJECON414809    Full Text (PDF)

A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey

Erişah ArıcanAbdurrahman Çetin

This dissertation analyses the efficiency of the Turkish banking sector by comparing the benefits obtained by deposit banks and participation banks operating from deposits/participation funds and loans (interest or profit rates) using econometric models. 
Firstly we comparatively examine average interest rates and profit shares by deposit banks and Islamic banks, respectively, using monthly data for the period January 2005-December 2015 using Monte Carlo Simulation. This analysis reveals that deposit banks paid a 0.49 point higher rate of interest for deposits than the profit rates paid by Islamic banks. This difference is statistically significant at conventional significant levels. Secondly, we compare interest and profit rates for the mortgage loans of  the two groups of banks for the period June 2010-December 2015 using Monte Carlo simulation. We find that conventional banks offered these loans at a rate of 0.92 points lower than Islamic banks. This difference is also statistically significant at conventional significance levels. For the same period we find that, on average, Islamic banks offered commercial loans at a significantly 0.72 basis points lower rate statistically  in comparison to deposit banks. Finally, we compare these groups of banks across return on assets, return on equity and net interest/profit margin using regression analysis for the period January 2005-December 2015. This analysis employs macroeconomic indicators, liquidity indicators, operational expenses, money supply indicators, asset quality indicators as explanatory variables. We find no statistically significant difference in these measures between  the two groups of banks. 


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APA

Arıcan, E., & Çetin, A. (2018). A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey. Istanbul Journal of Economics, 68(1), 45-92. https://doi.org/10.26650/ISTJECON414809


AMA

Arıcan E, Çetin A. A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey. Istanbul Journal of Economics. 2018;68(1):45-92. https://doi.org/10.26650/ISTJECON414809


ABNT

Arıcan, E.; Çetin, A. A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey. Istanbul Journal of Economics, [Publisher Location], v. 68, n. 1, p. 45-92, 2018.


Chicago: Author-Date Style

Arıcan, Erişah, and Abdurrahman Çetin. 2018. “A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey.” Istanbul Journal of Economics 68, no. 1: 45-92. https://doi.org/10.26650/ISTJECON414809


Chicago: Humanities Style

Arıcan, Erişah, and Abdurrahman Çetin. A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey.” Istanbul Journal of Economics 68, no. 1 (May. 2024): 45-92. https://doi.org/10.26650/ISTJECON414809


Harvard: Australian Style

Arıcan, E & Çetin, A 2018, 'A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey', Istanbul Journal of Economics, vol. 68, no. 1, pp. 45-92, viewed 21 May. 2024, https://doi.org/10.26650/ISTJECON414809


Harvard: Author-Date Style

Arıcan, E. and Çetin, A. (2018) ‘A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey’, Istanbul Journal of Economics, 68(1), pp. 45-92. https://doi.org/10.26650/ISTJECON414809 (21 May. 2024).


MLA

Arıcan, Erişah, and Abdurrahman Çetin. A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey.” Istanbul Journal of Economics, vol. 68, no. 1, 2018, pp. 45-92. [Database Container], https://doi.org/10.26650/ISTJECON414809


Vancouver

Arıcan E, Çetin A. A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey. Istanbul Journal of Economics [Internet]. 21 May. 2024 [cited 21 May. 2024];68(1):45-92. Available from: https://doi.org/10.26650/ISTJECON414809 doi: 10.26650/ISTJECON414809


ISNAD

Arıcan, Erişah - Çetin, Abdurrahman. A Comparative Analysis of Market Efficiency of Participation and Deposit Banks in Turkey”. Istanbul Journal of Economics 68/1 (May. 2024): 45-92. https://doi.org/10.26650/ISTJECON414809



TIMELINE


Submitted12.04.2018
Accepted27.04.2018
Published Online27.06.2018

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