Competition Analysis for the Participation Banking Sector in Turkey

Islamic banking, or with its widespread use in Turkey, the concept of Participation banking is developing rapidly in Turkey as in the whole world. The sector finds a market in developed countries such as the United Kingdom and the USA as well as in countries such as Saudi Arabia, Gulf Countries, Malaysia, Indonesia, Pakistan, Egypt and Turkey. In this study, the competition analysis of the participation banking sector in Turkey has been made using the Panzar-Rosse Model. In the study, the competitiveness of participation banks in Turkey was tested in the context of market structure by using quarterly data between 2016-2019. The findings obtained from the analyzes reveal that the participation banking sector in Turkey has the characteristics of an oligopoly market.

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