tailieunhanh - Development of participation banks and evaluation of participation banks in terms of performance: an application in Turkey and Malaysia

Performances of participation banks in the Turkish financial system and performances of participation banks in Malaysia are evaluated within this study, between 2000 and 2015. Relationship between profitability of participation banks and macroeconomic characteristics and indicators peculiar to banks operating in Turkey and Malaysia are examined. | Development of participation banks and evaluation of participation banks in terms of performance an application in Turkey and Malaysia International Journal of Management IJM Volume 7 Issue 7 November December 2016 190 Article ID IJM_07_07_019 Available online at http ijm JType IJM amp VType 7 amp IType 7 Journal Impact Factor 2016 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication DEVELOPMENT OF PARTICIPATION BANKS AND EVALUATION OF PARTICIPATION BANKS IN TERMS OF PERFORMANCE AN APPLICATION IN TURKEY AND MALAYSIA Eda ORUÇ ERDOĞAN Assistant Professor Akdeniz University Business Administration Department Turkey Abdullahi Mohamed NUR Phd Student Akdeniz University Business Administration Department Turkey ABSTRACT Banks fall within the financial institutions which play an important role in financial system and effect national economies. Stability of economy is basically based on performances of banks. As traditional banks in financial system are such banks that collect bank deposits or a specified rate of interest from depositors with fund surplus and extend them to those requesting funds in exchange of specified rate of interest the most important issue differentiating participation banking from traditional banking is that they provide with share instead of interest. Participation banks which operate based on interest-free basis become more effective in financial systems day by day. Accordingly it is an important issue to determine the performances of participation banks. Performances of participation banks in the Turkish financial system and performances of participation banks in Malaysia are evaluated within this study between 2000 and 2015. Relationship between profitability of participation banks and macroeconomic characteristics and indicators peculiar to banks operating in Turkey and Malaysia are examined. According to the results obtained it is concluded that capital .