International Congress on Eurasian Economies
26-28 June 2024 – Bishkek, KYRGYZSTAN
Paper properties
Paper ID : 2932
Status : Paper submitted to journal
Language : Turkish
Topic : Growth and Development
Presenter: Prof. Dr. İbrahim Halil Sugözü
Session : 4B Finans
Assessment of the Impact of the Dual Banking System on Growth through Loans in Türkiye
Türkiye’de İkili Bankacılık Sisteminin Krediler Yoluyla Büyümeye Olan Etkisinin Değerlendirilmesi
- Prof. Dr. İbrahim Halil Sugözü (Kyrgyz-Turkish Manas University, Kyrgyzstan)
- Asst. Prof. Dr. Mustafa Cabir Altıntaş (Şırnak University, Türkiye)
- Can Verberi (Şırnak University, Türkiye)
Abstract
In Turkey, the dual banking system, which comprises Islamic participation banking and conventional banking, possesses a distinct structure compared to other countries with Islamic banking operations, as it is governed by the same set of regulations. Within the financial system, traditional banking and participation banking exhibit different attributes. Hence, it is crucial to analyze the influence of Turkey’s dual banking system on economic growth through the credits they extend. This study seeks to explore the impact of credits provided by both participation and conventional banks in Turkey on economic growth, employing the ARDL method. The findings reveal that the credits provided by conventional banks have a detrimental effect on growth, whereas participation banks’ credits exert a positive influence. The study suggests that conventional banks should prioritize extending credit to the real sector, benefiting economic growth, rather than focusing solely on consumer loans. Additionally, supporting participation banks is essential for overall economic development.
JEL codes: G21, G00, O16
