Advanced Search
MyIDEAS: Login to save this article or follow this journal

The subprime crisis and Islamic stock markets integration

Contents:

Author Info

  • Bakri Abdul Karim
  • Nor Akila Mohd. Kassim
  • Mohammad Affendy Arip

Abstract

Purpose – The 2008-2009 crisis had no significant impact on the Turkish banking system (TBS), with the TBS achieving a record level of profitability in 2009. The strong position of Turkish banks against the global crisis is attributed generally to the good regulation and risk management in the TBS. The measures implemented by The Turkish Central Bank, and The Banking Regulation and Supervision Agency, e.g. high capital adequacy ratio, played a significant role. But, this judgment does not take into consideration the high profitability and some inefficiency of TBS in his role of financial intermediation. The purpose of this paper is to analyze the TBS's performance in the face of the global crisis. Design/methodology/approach – The paper compare the measures against the global crisis and the performances of banking systems by public supports to financial sector, measures taken vis-à-vis the crisis, ratios as deposits/loans, loans to non-financial sector and return to assets. Findings – The paper explains that the performance of TBS against the crisis is, to some extent, due to the high profitability and low efficiency in financial intermediation. Practical implications – Financial regulation and policy particularly in emerging or underdeveloped economies should find equilibrium between the soundness and efficiency of banking system. Originality/value – In full financial crisis the majority of scientific work focuses on the prudential regulation of the banking system and the problem of moral hazard. In fact, countries such as Turkey are still far from having the same problems and concerns. The paper shows that in spite of the global crisis, the TBS continued to obtain very raised profits: it can be said that the banking system soundness improved with the detriment the non-financial sector.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.emeraldinsight.com/journals.htm?articleid=1896487&show=abstract&t
Download Restriction: Cannot be freely downloaded

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Emerald Group Publishing in its journal International Journal of Islamic and Middle Eastern Finance and Management.

Volume (Year): 3 (2010)
Issue (Month): 4 (November)
Pages: 363-371

as in new window
Handle: RePEc:eme:imefpp:v:3:y:2010:i:4:p:363-371

Contact details of provider:
Web page: http://www.emeraldinsight.com

Order Information:
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Email:
Web: http://www.emeraldinsight.com/imefm.htm

Related research

Keywords: Diversification; Islam; Portfolio investment; Stock markets;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Hwahsin Cheng & John L. Glascock, 2006. "Stock Market Linkages Before and After the Asian Financial Crisis: Evidence from Three Greater China Economic Area Stock Markets and the US," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 297-315.
  2. Sudin Haron & Wan Nursofiza Wan Azmi, 2008. "Determinants of Islamic and conventional deposits in the Malaysian banking system," Managerial Finance, Emerald Group Publishing, vol. 34(9), pages 618-643.
  3. M. Shabri Abd. Majid & Ahamed Kameel Mydin Meera & Mohd. Azmi Omar, 2008. "Interdependence of ASEAN-5 Stock Markets from the US and Japan," Global Economic Review, Taylor & Francis Journals, vol. 37(2), pages 201-225.
  4. Michael Mussa & Morris Goldstein, 1993. "The integration of world capital markets," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 245-330.
  5. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
  6. W. N. W. Azman-Saini & M. Azali & M. S. Habibullah & K. G. Matthews, 2002. "Financial integration and the ASEAN-5 equity markets," Applied Economics, Taylor & Francis Journals, vol. 34(18), pages 2283-2288.
  7. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
  8. Gonzalo, Jesus, 1994. "Five alternative methods of estimating long-run equilibrium relationships," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 203-233.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eme:imefpp:v:3:y:2010:i:4:p:363-371. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.