ON THE CAUSAL RELATIONSHIP BETWEEN DEPOSIT RATES IN CONVENTIONAL BANKS AND PROFIT-SHARING RATES IN ISLAMIC BANKS IN TURKEY

This paper empirically investigates whether profit-sharing rates in Islamic banks follow of the conventional Turkey over sample period March 2001 to June 2019 through employing both standard econometric and wavelet approaches. We identify unidirectional bidirectional causality between monthly observations at different time scales. Moreover, direction relationship considerably varies displays coefficient sign reversal Overall, our findings suggest that return banking sectors are not independent each other and, therefore, have important implications regarding financial stability risk management.