ISLAMIC BANKING IN TURKEY: POPULATION PERCEPTION AND DEVELOPMENT CHALLENGES
Journal Title: Revista Romana de Geografie Politica - Year 2017, Vol 19, Issue 1
Abstract
Islamic banks have, over the last few decades, become very popular in the Gulf countries and in some countries in Southeast Asia with a majority Muslim population. They are on the rise even in some western cities such as London or New York which have witnessed a significant increase in their Muslim population. In this context, it is then surprising to see that in Turkey, a country in which almost 100% of the population is Muslim, the Islamic banking system is still in its incipient stage. This study has investigated the reasons for the underdevelopment of the Islamic banking system in Turkey. We found that, due to the long period of secularism, most Turks separate religion from business and select their bank based on financial advantages, diversity of financial products and quality of service rather than based on the need to adhere to Shari’a principles. Many people also do not trust that these institutions are really Shari’a-compliant and safe. This is partly due to the customers’ lack of understanding of how these banks operate and partly due to the numerous cases of bad practices reported by the media and the academic literature. We conclude that, while their assets and share will most probably increase over the next 10 years it seems very unlikely that Islamic banks will really become a sustainable alternative banking system in Turkey. The Islamic banking system will rather remain an additional or complementary banking system.
Authors and Affiliations
EGRESI István, BELGE Rauf
Keywords
Related Articles
- EP ID EP184230
- DOI -
- Views 215
- Downloads 0
LOCAL GOVERNMENTS AND PUBLIC SECURITY: POSITION OF THE PUBLIC SECURITY IN THE MUNICIPAL COUNCIL COMMITTEES OF THE LOCAL GOVERNMENTS OF HUNGARY
Today, the public safety plays an increasingly important role in people's live and improving it more and more task falls to local governments. In the light of the above, the present paper examining the Hungarian situatio...
THE INTERNATIONALIZATION OF ITALIAN COMPANIES: A GEOGRAPHICAL PERSPECTIVE
In an increasingly globalized economic environment, businesses wishing to operate in foreign markets must be familiar with the cultural context of the host country, its rules and the rules of entry. cultural shock betwee...
EUROSCEPTISIM, AN INCREASING PHENOMENON AMONG THE MEMBER STATES. ROAD TO BREXIT
In the context of a “shaking Europe”, the Eurosceptic voice sounds more loudly than ever. Known as a highly Eurosceptic member, the United Kingdom, through the lens of the rising political power of the UK Independence Pa...
TERRORISM AND ITS IMPACTS ON THE TOURISM INDUSTRY
The tourism industry is considered one of the most important cogged wheels of the global economy. Numerous countries – specially emerging and least developed - have benefited from the growing number of tourists that visi...
URBAN RESILIENCE – A FIRST STEP TOWARDS THE CITY OF THE FUTURE
As complex forms of human settlement, cities have known an unprecedented development in recent years. This has made it necessary to find new ways of preserving them during the journey they undertake. As such, policies of...