The role of Islamic banks within the Turkish financial system (Ph.D. Thesis)

Turkey has been considered highly favorable country in which to promote Islamic banking. This is partly due to its nature as a secular state with a large Muslim majority population, with a strategic geographic location as well. Turkey has seen rapid financial changes in the last decade, and Islamic banks that can succeed amongst heavy competition from conventional institutions will serve as a model for other developing Islamic financial programs. This thesis offers a historical background of the Turkish financial system, including the role of the Central Bank and the nature of conventional banking in the present day. Islamic financial developments and legal regulations, such as riba, are also discussed. The Islamic banking system is detailed, outlining specific services offered in Turkey. There is also an evaluation of Islamic banks in comparison to the Turkish economy.