Favoring the small and the plenty: Islamic banking for MSMEs

<p>While MSMEs form the backbone of many countries, most of them suffer from limited access to finance. We extend the literature by examining whether Islamic banks, compared to their conventional peers, favor more the MSMEs credit market segment in Turkey. We do this by considering various asp...

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Main Author: Mustafa Disli (17307716) (author)
Other Authors: Ahmet F. Aysan (17191270) (author), Omneya Abdelsalam (19325635) (author)
Published: 2023
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author Mustafa Disli (17307716)
author2 Ahmet F. Aysan (17191270)
Omneya Abdelsalam (19325635)
author2_role author
author
author_facet Mustafa Disli (17307716)
Ahmet F. Aysan (17191270)
Omneya Abdelsalam (19325635)
author_role author
dc.creator.none.fl_str_mv Mustafa Disli (17307716)
Ahmet F. Aysan (17191270)
Omneya Abdelsalam (19325635)
dc.date.none.fl_str_mv 2023-04-03T06:00:00Z
dc.identifier.none.fl_str_mv 10.1016/j.ecosys.2022.101051
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Favoring_the_small_and_the_plenty_Islamic_banking_for_MSMEs/26661622
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Economics
Applied economics
Philosophy and religious studies
Religious studies
Small business lending
Islamic banking
dc.title.none.fl_str_mv Favoring the small and the plenty: Islamic banking for MSMEs
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p>While MSMEs form the backbone of many countries, most of them suffer from limited access to finance. We extend the literature by examining whether Islamic banks, compared to their conventional peers, favor more the MSMEs credit market segment in Turkey. We do this by considering various aspects of the lending behavior towards MSMEs (total lending, foreign currency lending, loan commitments, loan quality, and revenues) across different MSMEs size categories (micro, small and medium-sized firms). Our results show that once we control for bank-specific characteristics, we find that Islamic banks are more engaged with MSME financing and generate more revenues from servicing MSMEs. Concerning the quality of the MSME lending portfolio, no distinguishable patterns were observed between Islamic and conventional banks.</p><h2>Other Information</h2> <p> Published in: Economic Systems<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.ecosys.2022.101051" target="_blank">https://dx.doi.org/10.1016/j.ecosys.2022.101051</a></p>
eu_rights_str_mv openAccess
id Manara2_4208e8fd7902b838cde1fee53faac5aa
identifier_str_mv 10.1016/j.ecosys.2022.101051
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/26661622
publishDate 2023
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rights_invalid_str_mv CC BY 4.0
spelling Favoring the small and the plenty: Islamic banking for MSMEsMustafa Disli (17307716)Ahmet F. Aysan (17191270)Omneya Abdelsalam (19325635)EconomicsApplied economicsPhilosophy and religious studiesReligious studiesSmall business lendingIslamic banking<p>While MSMEs form the backbone of many countries, most of them suffer from limited access to finance. We extend the literature by examining whether Islamic banks, compared to their conventional peers, favor more the MSMEs credit market segment in Turkey. We do this by considering various aspects of the lending behavior towards MSMEs (total lending, foreign currency lending, loan commitments, loan quality, and revenues) across different MSMEs size categories (micro, small and medium-sized firms). Our results show that once we control for bank-specific characteristics, we find that Islamic banks are more engaged with MSME financing and generate more revenues from servicing MSMEs. Concerning the quality of the MSME lending portfolio, no distinguishable patterns were observed between Islamic and conventional banks.</p><h2>Other Information</h2> <p> Published in: Economic Systems<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.ecosys.2022.101051" target="_blank">https://dx.doi.org/10.1016/j.ecosys.2022.101051</a></p>2023-04-03T06:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.ecosys.2022.101051https://figshare.com/articles/journal_contribution/Favoring_the_small_and_the_plenty_Islamic_banking_for_MSMEs/26661622CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/266616222023-04-03T06:00:00Z
spellingShingle Favoring the small and the plenty: Islamic banking for MSMEs
Mustafa Disli (17307716)
Economics
Applied economics
Philosophy and religious studies
Religious studies
Small business lending
Islamic banking
status_str publishedVersion
title Favoring the small and the plenty: Islamic banking for MSMEs
title_full Favoring the small and the plenty: Islamic banking for MSMEs
title_fullStr Favoring the small and the plenty: Islamic banking for MSMEs
title_full_unstemmed Favoring the small and the plenty: Islamic banking for MSMEs
title_short Favoring the small and the plenty: Islamic banking for MSMEs
title_sort Favoring the small and the plenty: Islamic banking for MSMEs
topic Economics
Applied economics
Philosophy and religious studies
Religious studies
Small business lending
Islamic banking