Risk Management in
Islamic Financial Instruments
75
Chart 4.15: Operational Efficiency Ratios for Malaysian Banks
Source: BankScope Database 2013
Chart 4.16: Liquidity Ratio for Malaysian Banks
Source: BankScope Database 2013
4.4.2 Republic Of Turkey
Located between Asia and Europe, Turkey has a developed financial market with a large
potential consumer base for the Islamic financial services industry. Turkey is home to a diverse
option of deposit and financing facilities for both corporate and commercial clients. The
Islamic capital markets remain relatively nascent, however, with Ijarah being the main
principle for fund raising activities. The country has a well-regulated stock exchange that has
both sukuk and Shariah-compliant ETFs listed. In addition, the central bank supports Shariah-
2,16 1,68 1,15 1,40 1,12
13,58
49,81
3,03 2,29 2,13 0,21 0,35 7,35
11,28
0
10
20
30
40
50
60
Net Interest
Margin
%
2011
Net Int Rev /
Avg Assets
%
2011
Non Int Exp /
Avg Assets
%
2011
Pre-Tax Op
Inc / Avg
Assets
%
2011
Return On
Avg Assets
(ROAA)
%
2011
Return On
Avg Equity
(ROAE)
%
2011
Dividend
Pay-Out
%
2011
Malaysia Conventional Malaysia Islamic
34,04
48,44
58,05
31,36
87,19
52,86
60,59
27,32
0
10
20
30
40
50
60
70
80
90
100
Interbank Ratio
%
2011
Net Loans / Tot Assets
%
2011
Net Loans / Dep & ST
Funding
%
2011
Liquid Assets / Dep & ST
Funding
%
2011
Malaysia Conventional Malaysia Islamic