Business, Management and Accounting
4 years ago

Islamic banks in Turkey lead the way in financing small businesses.

Is Small the New Big? Islamic Banking for SMEs in Turkey
Ahmet Faruk Aysan, Mustafa Disli, Adam Ng, Hüseyin Öztürk

Paper Summary

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The article "Is Small the New Big? Islamic Banking for SMEs in Turkey" explores whether Islamic banks in Turkey are more willing to finance small and medium-sized enterprises (SMEs) compared to conventional banks. The researchers analyzed data from 40 commercial banks in Turkey from 2006 to 2014 and found that Islamic banks are indeed more inclined to finance SMEs. Additionally, the quality of Islamic banks' SME loan portfolios is similar to that of conventional banks. This suggests that Islamic banking could be a viable option for SME financing in Turkey.