The Relationship Between Participation Bank Off-Balance Sheet Transactions and Performance: The Case of Turkey Cover Image

Katılım Bankalarının Bilanço Dışı İşlemleri İle Performansları Arasındaki İlişki: Türkiye Örneği
The Relationship Between Participation Bank Off-Balance Sheet Transactions and Performance: The Case of Turkey

Author(s): Recep Çakar
Subject(s): Business Economy / Management
Published by: Orhan Sağçolak
Keywords: Participation Banking; Off-Balance Sheet Transactions; Profitability;

Summary/Abstract: Purpose – Participation banks cannot act as fast as traditional banks in the evaluation of the funds collected by their nature, and cannot use their funds as efficiently as traditional banks. However, participation banks, like traditional banks, are liable for off-balance sheet transactions to strengthen their capital structures and increase their competitiveness. As a result of the off-balance sheet transactions, participation banks follow up their liabilities, the provision allocated to their assets and the precautionary principle, and follow-up their trust and pledges. In the light of this information, the aim of the study is to examine the causal relationships between the off-balance sheet transactions of the participation banks and the key profitability data and to shed some light on the information users in their decisions.

  • Issue Year: 12/2020
  • Issue No: 2
  • Page Range: 1949-1961
  • Page Count: 13
  • Language: Turkish
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