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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
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    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.
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