Dergi makalesi Açık Erişim

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

2018    Çetin, Abdurrahman; Arıcan, Erişah

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.