IDEAS home Printed from https://ideas.repec.org/a/acc/malfin/v31y2016i105p93-114.html

Fundamental Principles of Interest-Free Finance and Its Use in the Real Sector in Turkey

Author

Listed:
  • Hediyetullah Karahan

    (Cavme Grup)

  • Hicabi Ersoy

    (İstanbul Commerce University)

Abstract

The purpose of this work; to put forward basis principles of interest free-finance with contrubition to real sector and to identify that interest rate sensitivity is not unique reason to prefer interest free products. In this research, survey method was used and include 152 central and branch offices of companies in Istanbul. The survey show that almost half of companies use these tools due to interest precision, 1/3 use for limit and collateralization conditions.

Suggested Citation

  • Hediyetullah Karahan & Hicabi Ersoy, 2016. "Fundamental Principles of Interest-Free Finance and Its Use in the Real Sector in Turkey," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 31(105), pages 93-114, April.
    • Handle: RePEc:acc:malfin:v:31:y:2016:i:105:p:93-114
    DOI: https://doi.org/10.33203/mfy.312137
    as

    Download full text from publisher

    File URL: https://dergipark.org.tr/tr/download/article-file/302022
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.33203/mfy.312137?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Muhammad Akram Khan, 2013. "What is Wrong with Islamic Economics?," Books, Edward Elgar Publishing, number 15292.
    2. Zamir Iqbal & Hennie Van Greuning, 2008. "Risk Analysis for Islamic Banks," World Bank Publications - Books, The World Bank Group, number 6923, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kaouther Toumi Lajimi & Rana El Bahsh & Serge Agbodjo, 2017. "The determinants of bank profitability, do Islamic ethics perspective matter ? A comprehensive study on Islamic banks vs. conventional ones," Post-Print hal-04109833, HAL.
    2. Khawla Bourkhis & Mahmoud Sami Nabi, 2011. "Have Islamic Banks Been More Resistant Than Conventional Banks to the 2007-2008 Financial Crisis?," Working Papers 616, Economic Research Forum, revised 08 Jan 2011.
    3. Djelassi, Mouldi & Boukhatem, Jamel, 2020. "Modelling liquidity management in Islamic banks from a microeconomic perspective," Finance Research Letters, Elsevier, vol. 36(C).
    4. Hasan, Zubair, 2017. "Academic sociology: The alarming rise in predatory publishing and its consequences for Islamic economics and finance," MPRA Paper 87853, University Library of Munich, Germany, revised 18 Sep 2018.
    5. Muhammad Nouman & Maria Hashim & Vanina Adoriana Trifan & Adina Eleonora Spinu & Muhammad Fahad Siddiqi & Farman Ullah Khan, 2022. "Interest rate volatility and financing of Islamic banks," PLOS ONE, Public Library of Science, vol. 17(7), pages 1-21, July.
    6. Hassan, M. Kabir & Khan, Ashraf & Paltrinieri, Andrea, 2019. "Liquidity risk, credit risk and stability in Islamic and conventional banks," Research in International Business and Finance, Elsevier, vol. 48(C), pages 17-31.
    7. Hassan B. Ghassan & Stefano Fachin, 2016. "Time series analysis of financial stability of banks: Evidence from Saudi Arabia," Review of Financial Economics, John Wiley & Sons, vol. 31(1), pages 3-17, November.
    8. Helmy, Mohamed, 2012. "Risk management in Islamic banks," MPRA Paper 38706, University Library of Munich, Germany.
    9. Necla Ilter Kucukcolak & Figen Buyukakin & Recep Ali Kucukcolak, 2019. "Liquidity Risk Management in Islamic Banking: Comparative Analysis with SUR Methodology for Turkey," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 8(4), pages 54-71, December.
    10. Md. Kausar Alama & Suhaimi Ab. Rahmanb & Oli Ahad Thakurc & Md Abdul Bashird & and Sharif Hosene, 2020. "The Reasons Behind the Absence of a Comprehensive Shariah Governance Framework of Islamic Banks in Bangladesh," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 134-145.
    11. Reviewed by: Tariq Aziz, 2020. "Ayman Reda: Prophecy, Piety, and Profits: A Conceptual and Comparative History of Islamic Economic Thought, Reviewed by: Tariq Aziz أيمن رضا: النبوة والتقوى والأرباح: تاريخ مفاهيمي ومقارَن للفكر الاقتصادي الإسلامي: مراجعة: طارق عزيز," Book reviews and book reports published in the Journal of King Abdulaziz University: Islamic Economics. 1739, King Abdulaziz University, Islamic Economics Institute..
    12. Bourkhis, Khawla & Nabi, Mahmoud Sami, 2013. "Islamic and conventional banks' soundness during the 2007–2008 financial crisis," Review of Financial Economics, Elsevier, vol. 22(2), pages 68-77.
    13. Volker Nienhaus, 2014. "Religion and development," Chapters, in: M. Kabir Hassan & Mervyn K. Lewis (ed.), Handbook on Islam and Economic Life, chapter 28, pages iii-iii, Edward Elgar Publishing.
    14. Soumik Bhusan & Prasenjit Chakrabarti, 2025. "Does Debt Overhang Impound Market Discipline: A Study of Bank Risk-taking Using a Natural Experiment," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 24(4), pages 393-414, December.
    15. Mohd. Yusof, Rosylin & Bahlous, Mejda & Tursunov, Hamza, 2015. "Are Profit Sharing Rates of Mudharabah Account Linked to Interest Rates? An Investigation on Islamic Banks in GCC Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 49(2), pages 77-86.
    16. Fauziah Mahat & Noor Azman Ali, 2015. "The Roles of Risk Governance on Islamic Banking Systems," Proceedings of International Academic Conferences 2705187, International Institute of Social and Economic Sciences.
    17. Shinta Amalina Hazrati Havidz & Chandra Setiawan, 2015. "A Comparative Study of Efficiency between Conventional and Islamic Banks in Indonesia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(5), pages 790-804, May.
    18. Najeeb, Syed Faiq & Ibrahim, Shahul Hameed Mohamed, 2014. "Professionalizing the role of Shari'ah auditors: How Malaysia can generate economic benefits," Pacific-Basin Finance Journal, Elsevier, vol. 28(C), pages 91-109.
    19. Metin Aktas & Osman Taylan, 2021. "Determinants of Islamic Banks’ Profitability Using Panel Data Analysis and ANFIS Approaches in Saudi Arabia محددات ربحية المصارف الإسلامية باستخدام تحليل البيانات المَقْطعية وأساليب الاستدلال التَّكَيُّفي في المملكة العربية السعودية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 34(2), pages 19-40, July.
    20. Shadi Ratib Mohammad Aledeimat & Murad Abdurahman Bein, 2025. "Assessing US and Global Economic Policy Uncertainty Effects on Non‐Performing Loans in MENA's Islamic and Conventional Banks," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 4279-4304, October.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:acc:malfin:v:31:y:2016:i:105:p:93-114. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Süleyman Kale (email available below). General contact details of provider: https://dergipark.org.tr/en/pub/mfy .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.