Aysan, Ahmet F. and Disli, Mustafa and Ng, Adam and Ozturk, Huseyin,(2016), Is small the new big? Islamic banking for SMEs in Turkey. , Economic Modelling 54 (2016) 187–194, UNSPECIFIED
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Abstract
While SMEs constitute the backbone of many economies, many SMEs have limited access to finance. Yet,
banks in some countries are actively financing SMEs. This paper examines whether this is true in the case
of Turkey, a G20 economy that has a significant SME sector. We study the determinants of banks' willingness
to finance SMEs and banks' processing ability of SME financing portfolio in Turkey based on a unique
quarterly small business panel data set of 40 commercial banks from 2006 to 2014. Employing pooled
OLS and fixed-effects estimators, we find that Islamic banks (known as Participation banks in Turkey) are
more inclined toward financing SMEs than conventional banks. We also find that the quality of Islamic
banks' SME loan portfolio is comparable to that of conventional banks. The results are fairly robust to different
bank ownership forms (state owned, private, and Islamic banks) and alternative model specifications.
Our findings provide further support to the notion of “small is the new big” in that banking for SMEs can
be a viable venture.
Keywords : | Islamic banks Small business lending, UNSPECIFIED |
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Journal or Publication Title: | Economic Modelling 54 (2016) 187–194 |
Volume: | 54 |
Number: | UNSPECIFIED |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Nila Nurjanah |
Date Deposited: | 26 Dec 2019 05:11 |
Last Modified: | 26 Dec 2019 05:11 |
URI: | https://repofeb.undip.ac.id/id/eprint/810 |