Relationship between Rate of Returns on Foreign Exchange Islamic and Conventional Deposits in Turkey

The causal relationship between the rates of return on deposits of Islamic banks and deposits of conventional banks in an economy with dual banking systems is a significant area of study in the literature. While studying this causal relationship, vast majority of the existing studies consider domest...

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Main Author: Etem Hakan ERGEÇ
Format: Article
Language:Turkish
Published: Usak University 2018-07-01
Series:Optimum Ekonomi ve Yönetim Bilimleri Dergisi
Subjects:
Online Access:http://dergipark.gov.tr/download/article-file/494359
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spelling doaj-4f3939e2865d43bb8e7bd6de063214752020-11-24T21:05:22ZturUsak UniversityOptimum Ekonomi ve Yönetim Bilimleri Dergisi2148-42282148-42282018-07-0152147162Relationship between Rate of Returns on Foreign Exchange Islamic and Conventional Deposits in TurkeyEtem Hakan ERGEÇThe causal relationship between the rates of return on deposits of Islamic banks and deposits of conventional banks in an economy with dual banking systems is a significant area of study in the literature. While studying this causal relationship, vast majority of the existing studies consider domestic currency deposits. In this paper instead of domestic currency deposits, I consider foreign exchange currency deposits. By employing Toda-Yamamoto causality analysis, a causality relationship for all the maturity groups is found, but not for the 12-months maturity. For dollar accounts, the causality relationship between rate of returns of Islamic and Conventional banking is found to be two-way. For Euro accounts, this causality relationship is found to be one way, where the interest rate of conventional banks is Granger cause of profit share of Islamic banks.http://dergipark.gov.tr/download/article-file/494359Profit ShareInterest RateForeign Exchange DepositsIslamic BankingTurkish Banking System
collection DOAJ
language Turkish
format Article
sources DOAJ
author Etem Hakan ERGEÇ
spellingShingle Etem Hakan ERGEÇ
Relationship between Rate of Returns on Foreign Exchange Islamic and Conventional Deposits in Turkey
Optimum Ekonomi ve Yönetim Bilimleri Dergisi
Profit Share
Interest Rate
Foreign Exchange Deposits
Islamic Banking
Turkish Banking System
author_facet Etem Hakan ERGEÇ
author_sort Etem Hakan ERGEÇ
title Relationship between Rate of Returns on Foreign Exchange Islamic and Conventional Deposits in Turkey
title_short Relationship between Rate of Returns on Foreign Exchange Islamic and Conventional Deposits in Turkey
title_full Relationship between Rate of Returns on Foreign Exchange Islamic and Conventional Deposits in Turkey
title_fullStr Relationship between Rate of Returns on Foreign Exchange Islamic and Conventional Deposits in Turkey
title_full_unstemmed Relationship between Rate of Returns on Foreign Exchange Islamic and Conventional Deposits in Turkey
title_sort relationship between rate of returns on foreign exchange islamic and conventional deposits in turkey
publisher Usak University
series Optimum Ekonomi ve Yönetim Bilimleri Dergisi
issn 2148-4228
2148-4228
publishDate 2018-07-01
description The causal relationship between the rates of return on deposits of Islamic banks and deposits of conventional banks in an economy with dual banking systems is a significant area of study in the literature. While studying this causal relationship, vast majority of the existing studies consider domestic currency deposits. In this paper instead of domestic currency deposits, I consider foreign exchange currency deposits. By employing Toda-Yamamoto causality analysis, a causality relationship for all the maturity groups is found, but not for the 12-months maturity. For dollar accounts, the causality relationship between rate of returns of Islamic and Conventional banking is found to be two-way. For Euro accounts, this causality relationship is found to be one way, where the interest rate of conventional banks is Granger cause of profit share of Islamic banks.
topic Profit Share
Interest Rate
Foreign Exchange Deposits
Islamic Banking
Turkish Banking System
url http://dergipark.gov.tr/download/article-file/494359
work_keys_str_mv AT etemhakanergec relationshipbetweenrateofreturnsonforeignexchangeislamicandconventionaldepositsinturkey
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