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Are Islamic Banks Subject to Depositor Discipline?

Ahmet Aysan (), M. Disli (), Huseyin Ozturk and Ibrahim Turhan ()

Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration

Abstract: We look at market discipline in the Islamic deposit market of Turkey for the period after the 2000 crisis. We find support for quantity based disciplining of Islamic banks through the capital ratio. The evidence for price disciplining is, however, less convincing. In addition, we also look at the effect of the deposit insurance reform in which the dual deposit insurance was revised and all banks were put under the same deposit insurance company in December 2005. We observe that the reform increased quantity based disciplining in the Turkish Islamic deposit market.

Keywords: Depositor discipline; Islamic banks (search for similar items in EconPapers)
JEL-codes: G23 G28 O52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara, nep-com and nep-cwa
Date: 2013-12
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Related works:
Journal Article: ARE ISLAMIC BANKS SUBJECT TO DEPOSITOR DISCIPLINE? (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:rug:rugwps:13/871

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