Turkish Economy Money Supply Dynamics, and Participation Banking

Abstract

The beginning of the 2000s has been a period of serious economic difficulties for Turkey. The year 2005 is seen as a turning point for participation banks. The participation banks were included in the scope of the Banking Law within the framework of the European Union harmonization laws, and they passed into deposit guarantee system. With this, participation banks also participated in the money supply data, reported by the Central Bank of the Republic of Turkey, and started to be included in the reports. A new era has begun for the participation banks. In this study, the effects and numerical changes of participation banks on money supply between 2015-2021 were analysed. Participation banks' data were evaluated by using M1, M2 and M3 data, which are among t he money supply definitions.