The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach
Participation banks are in the same financial environment with the conventional banks, so the mac- ro-economic variables are expected to affect the participation funds. The purpose of this study is to examine the relationship between participation funds and macroeconomic variables for Turkey. The re...
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İLKE İlim Kültür Eğitim Vakfı
2020-08-01
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| Series: | Türkiye İslam İktisadı Dergisi |
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| Online Access: | https://tujise.org/content/6-issues/14-7-2/a091/tujise-7.2-132-148.pdf |
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| _version_ | 1832544750451818496 |
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| author | Yavuz Demirdögen Fatih Kaplan |
| author_facet | Yavuz Demirdögen Fatih Kaplan |
| author_sort | Yavuz Demirdögen |
| collection | DOAJ |
| description | Participation banks are in the same financial environment with the conventional banks, so the mac- ro-economic variables are expected to affect the participation funds. The purpose of this study is to examine the relationship between participation funds and macroeconomic variables for Turkey. The relation between the total Turkish currency funds in participation banks and macroeconomic variables is examined using the weekly data se- ries from 10th of July 2015 to 5th of November 2018 by applying VAR and SVAR analysis. The total amount of the deposits of participation banks, weighted average interest rates, Borsa Istanbul gold prices, deposit interest rates of conventional banks, M2 defined money supply and total foreign exchange reserves of Central Bank of the Turkish Republic and USD exchange rate data were used as the secondary data tools. As a result of the VAR analysis, it was found that the total deposits of Islamic banks are primarily affected by money supply and the quarterly deposit in- terest rates of conventional banks. The SVAR analysis on the basis of these variables reveals that there is a positive correlation between money supply and participation funds while the relation is negative with the quarterly deposit interest rates of conventional banks and the participation funds. According to these analyses, participation funds benefit from the expansionary monetary policy, however; the interest rate policy of conventional banks negatively affects the fund inflow of the Islamic banks. |
| format | Article |
| id | doaj-art-5d53e922b766464fadaf0b1b7c1f65e5 |
| institution | Kabale University |
| issn | 2148-3809 |
| language | English |
| publishDate | 2020-08-01 |
| publisher | İLKE İlim Kültür Eğitim Vakfı |
| record_format | Article |
| series | Türkiye İslam İktisadı Dergisi |
| spelling | doaj-art-5d53e922b766464fadaf0b1b7c1f65e52025-02-03T09:56:55ZengİLKE İlim Kültür Eğitim VakfıTürkiye İslam İktisadı Dergisi2148-38092020-08-017212614310.26414/A091The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis ApproachYavuz Demirdögen0https://orcid.org/0000-0003-0648-1872 Fatih Kaplan1https://orcid.org/0000-0001-7417-1126Süleyman Demirel UniversityTarsus UniversityParticipation banks are in the same financial environment with the conventional banks, so the mac- ro-economic variables are expected to affect the participation funds. The purpose of this study is to examine the relationship between participation funds and macroeconomic variables for Turkey. The relation between the total Turkish currency funds in participation banks and macroeconomic variables is examined using the weekly data se- ries from 10th of July 2015 to 5th of November 2018 by applying VAR and SVAR analysis. The total amount of the deposits of participation banks, weighted average interest rates, Borsa Istanbul gold prices, deposit interest rates of conventional banks, M2 defined money supply and total foreign exchange reserves of Central Bank of the Turkish Republic and USD exchange rate data were used as the secondary data tools. As a result of the VAR analysis, it was found that the total deposits of Islamic banks are primarily affected by money supply and the quarterly deposit in- terest rates of conventional banks. The SVAR analysis on the basis of these variables reveals that there is a positive correlation between money supply and participation funds while the relation is negative with the quarterly deposit interest rates of conventional banks and the participation funds. According to these analyses, participation funds benefit from the expansionary monetary policy, however; the interest rate policy of conventional banks negatively affects the fund inflow of the Islamic banks.https://tujise.org/content/6-issues/14-7-2/a091/tujise-7.2-132-148.pdfparticipations banksaggregate fundsmacroeconomic variablestime series analysissvar analysis |
| spellingShingle | Yavuz Demirdögen Fatih Kaplan The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach Türkiye İslam İktisadı Dergisi participations banks aggregate funds macroeconomic variables time series analysis svar analysis |
| title | The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach |
| title_full | The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach |
| title_fullStr | The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach |
| title_full_unstemmed | The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach |
| title_short | The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach |
| title_sort | relationship between participation funds and macroeconomic variables svar analysis approach |
| topic | participations banks aggregate funds macroeconomic variables time series analysis svar analysis |
| url | https://tujise.org/content/6-issues/14-7-2/a091/tujise-7.2-132-148.pdf |
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