Conferences

This paper suggests a new explanation to the low presence of Profit and Loss Sharing (PLS) contracts in Islamic banks balance sheets.

In the past,

Islamic banking and finance is now considered as part of the global financial system by taking up important role in economic growth in many countries in which it operates. 1983 marked the emergence of Islamic banking in Turkey with first Islamic bank of Special Finance House set up in 1985. Currently, there are four Islamic banks or Participation Banks (PB) operating in the country having about 4% share in Turkey’s financial system.

In Gulf Cooperation Council countries, Islamic banks operate side-by-side with conventional banks. Both their operations are based on their own principles and frameworks although some regulations might overlap with each other. This study aims to explore the impact of fair value accounting on financial instability for both types of banks during the period 2003 to 2011. The paper discusses whether fair value affects capital adequacy ratio and risk-taking behavior of Islamic and conventional banks in the same way.

Since their inception in the mid-1980s, Islamic banks (IBs) or participation banks (PBs) have not yet become one of the primary aspects of the Turkish financial system. Given the developments in other regions such as South East Asia and the Gulf, the market share of the IB sector has been minute, only attaining the level of five percent in the Turkish financial system.

On the deposit side, Islamic banks work on a mudaraba (partnership) contract, where depositor and the bank are business partners.

With the help of favourable macroeconomic conditions during the last two decades, the

Financial health is crucial to the continuous existence and operation of any organisation. It is even more essential in the case of

According to recent studies, corruption in a society, emanating from the prevalence of asymmetrical and monopolistic information, is considered one of the most systematic impediments to economic development. Based on a hypothesis tested in the developed countries, ICT expansion, through information dissemination and establishment of e-governments, leads to more transparency and less corruption, though there have been doubts about its effectiveness in reducing corruption in the developing countries.

Until recently, discussions of issues relating to dispute resolution in the Islamic finance industry have remained well in the background, as the stakeholders in the industry strived to promote this hitherto niche industry for a global recognition. Interest in studies relating to dispute resolution in Islamic banking and finance has mushroomed over the past few years, while the