| Summary: | Recently, participation banks, as well as conventional banks, have started to make a name
for themselves in the field of financing, increasing their support to the real sector every year. The
Turkish participation banking sector, which until recently was dominated by only private and foreignowned banks, the rapid entry of the public authority to the sector's revival and increasing volume in
the last period, closing the gap between the sector and the conventional system and providing a
dynamism to the sector gain has occurred. The aim of this study is to investigate the effect of the entry
of state-owned participation banks into the sector on banking sector performance during the period
of 2010: Q1-2020: Q3. In this context, the data related to participation banks are analyzed via twostage system two-step system generalized methods of moments (GMM). Although the results obtained
from the study show that the entry of public capital into the sector has a negative effect, it can be
stated that state-owned participation banks can make a positive contribution to the sector by
becoming more widespread and creating a scale economy effect.
|
|---|