Does Islamic banking reduce the risks of COVID-19 for SMEs? Novel evidence for SME financing in the pandemic period for an emerging market

Basit Öğe Kaydı
dc.contributor.authorDoruk, Omer Tugsal
dc.date.accessioned2025-01-06T17:43:21Z
dc.date.available2025-01-06T17:43:21Z
dc.date.issued2023
dc.description.abstractThis paper aims to examine the effect of COVID-19 on SME bank lending in the Islamic banking sector to small and medium-sized enterprises (SMEs) in an emerging market: Turkey. Under-standing whether SME bank lending in the Islamic banking sector is procyclical or not is very important to reduce the impact of COVID-19 on SMEs. Interrupted time series analysis (ITSA), the Markov switching regression model, and vector autoregressive (VAR) methodologies are employed using novel weekly data for the pandemic period. The present study finds that the Islamic banking sector for SME financing has behaved countercyclically during COVID-19 in the Turkish economy. The paper thus sheds new light on the relationship between Islamic bank lending for SME financing and the COVID-19 shock in an important emerging market. The findings can provide insights into how Islamic banks mitigate the effect of COVID-19 on SMEs in an emerging market context. The present paper clearly shows differences between Islamic bank lending toward SMEs and deposit bank lending toward SMEs in the pandemic era. The willingness of Islamic banks to supply loans to SMEs during the pandemic plays a vital role in reducing SME firm failure in the Turkish economy.
dc.identifier.doi10.1016/j.ijdrr.2023.103664
dc.identifier.issn2212-4209
dc.identifier.scopus2-s2.0-85152523028
dc.identifier.scopusqualityQ1
dc.identifier.urihttps://doi.org/10.1016/j.ijdrr.2023.103664
dc.identifier.urihttps://hdl.handle.net/20.500.14669/2636
dc.identifier.volume91
dc.identifier.wosWOS:000984514800001
dc.identifier.wosqualityQ1
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.language.isoen
dc.publisherElsevier
dc.relation.ispartofInternational Journal of Disaster Risk Reduction
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/closedAccess
dc.snmzKA_20241211
dc.subjectIslam
dc.subjectIslamic banking
dc.subjectCOVID-19
dc.subjectBank lending
dc.subjectSME financing
dc.subjectEmerging markets
dc.titleDoes Islamic banking reduce the risks of COVID-19 for SMEs? Novel evidence for SME financing in the pandemic period for an emerging market
dc.typeArticle

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