A HYBRID APPROACH TO FINANCIAL SOLVENCY: A COMPARISON OF CONVENTIONAL AND ISLAMIC BANKING IN TURKEY
A HYBRID APPROACH TO FINANCIAL SOLVENCY: A COMPARISON OF CONVENTIONAL AND ISLAMIC BANKING IN TURKEY
Author(s): Erdi Bayram, Ümit Hasan Gözkonan, Selim Baha Yildiz, Abdelbari El KhamlichiSubject(s): Business Economy / Management, Islam studies, Financial Markets
Published by: Kafkas Üniversitesi Sağlık, Kültür ve Spor Daire Başkanlığı Dijital Baskı Merkezi
Keywords: Financial soundness; Islamic banking; MCDM;
Summary/Abstract: In this study, the financial soundness indicators of both conventional banks (referred to as deposit banks) and Islamic banks (referred to as participation banks) operating in Turkey are analyzed using different methods. The research utilizes financial ratios from the years 2017 to 2022, with the chosen financial ratios aligned with the Bankometer method. Ranking methods such as ARAS, CoCoSo, COPRAS, MABAC and TOPSIS are applied, and the ranking results are combined with the Borda Count method. The findings reveal a robust and healthy level of financial soundness among the analyzed banks, notably highlighting the superior performance of private conventional banks in financial soundness rankings. Importantly, this research makes a valuable contribution by showcasing the financial stability exhibited by both the conventional and Islamic banking sectors in Turkey, even when subjected to different methods, even in the face of adverse global conditions, such as those observed during the COVID-19 pandemic.
Journal: Kafkas Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
- Issue Year: 14/2023
- Issue No: 28
- Page Range: 603-623
- Page Count: 21
- Language: English