INTEREST-FREE BANKING'S AND CONVENTIONAL BANKING'S ATTITUDES AGAINST FINANCIAL CRISES: THE CASE OF TURKEY1

Kaynakça (1)

1. o The analysis of efficiency ratio as the main determinant of the attitudes of banks towards their customers has shown that this ratio was higher for participation banks than it was for deposit banks both during the pre- and post-crisis periods. The ratios discussed in the study were 'Loans / Deposits',' Credit Interest (dividend) Income / Deposits Interest (dividend) Expense and the ratio of Deposit Interest (dividend) + Personnel Expense Expense) / Credit interest (dividend) income as an indicator of operating expenses. o Moreover, securities portfolio, which is essentially the concern of only deposit banks', was determined as an important efficiency ratio in terms of both customer preference and the income it provides. As securities portfolio income became more insignificant due to reduced borrowing requirements of the public sector, conventional banks have started to operate in an action-oriented manner opening credit channels for small and medium-sized enterprises (SMEs). o Another ratio group is the liquidity ratios. According to the results, both before and after the crisis the liquidity 2 average ratio for Participation Banks was higher than Savings Banks and the results for liquidity 1 were opposite. o Finally, while the leverage ratio for was higher for deposit banks before the crisis, after the crisis average of Participation Banks was found to be higher. Although the share of Participation Banks in the the banking sector in Turkey is low and their history is not long, it has been found that they relatively brought more resources to the real economy than deposit banks. The majority of participation banks provide significant financing in commercial and industrial areas of SME's. It has been identified that, apart from customer preferences, banks have differences in their attitudes during crisis periods. In the post-crisis period, as shown in deposit banks Activity 3 ratio, deposit banks had problems in deriving revenue from main operations and derived net revenue from the non-operating gains (such as portfolio interest income on marketable securities and other banking services and commission income). However, in the pre-crisis and post-crisis periods, participation banks went beyond the critical threshold in terms of strength and durability with their high rates of 'Loan/Deposit Ratio'. Project-based selectivity is an important element in the evaluation of the collected funds. In addition, in a system functioning on faith and trust, 'profit-loss