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Financial Stability of Islamic (Participation) Banks in Turkey

Sakarya, Burchan (2016): Financial Stability of Islamic (Participation) Banks in Turkey.

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Since Global Financial Crisis the performance of Islamic banks and conventional banks have been an area of interest due to the difference in the principles of financial intermediation. Another area of interest is the financial stability characteristic of Islamic banks stemming from their business model. With the strong growth projection of Islamic banking in global finance, their soundness becomes of an increasing concern. The main goal of the paper is to investigate whether Islamic (participation) banks in Turkey are more stable than conventional banks using a Z-Score values in a panel data framework

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