PARTICIPATORY BANKS AND THEIR SYNERGIES EFFECTS ON THEIR CONVENTIONAL COUNTERPARTS IN TURKEY’S MIXED BANKING SYSTEM

Zouhair El Azzouzi

Abstract


In recent decades, participatory banks have been growing all over the world, with unusual growth rates, as is the case in the Turkish Republic where there is a mixed banking system that accepts such banks with their conventional counterparts. However, our study focuses on the synergies that participatory banks can achieve on their conventional counterparts in the Turkish banking system. However, to address our present research problem, we have adopted an empirical study which is based initially on the econometric test of the unit root, which aims to verify the stationary nature of the study variables, including, the funds raised and the funds allocated, using the 10th version of the software Eviews. This, in order to move to linear regression between the independent variables representing the participating banks and the dependent ones represented by the conventional banks, and this on the software SPSS21. Indeed, all the observations are in million Turkish Pound and they were collected by the official website of the Turkish Participatory Banks Association covering the period between December 2011 and July 2018, that is, 80 observations. The results found showed us that participatory banks partially achieve synergies effects on conventional banks in Turkey’s mixed banking system. Moreover, these effects can be explained by the ethical principles on which the participatory banks are based and the competitive pressures between them and their conventional counterparts.

 

JEL: E50; G21; G24

 

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mixed banking system, participatory bank, conventional bank, synergistic effect, Turkey

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DOI: http://dx.doi.org/10.46827/ejefr.v0i0.752

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