The market domination, the problems,and the demand structure analysis of islamic banks: A case of Aegean region

With the removal of physical and technological borders between countries in the last 20-30 years, economic alliances have increased along with the political cooperations. Banking sector, one of the main actors has also been affected by this positive atmosphere, and the sector has grown rapidly in Turkey and in the world as well. The numeric and bulking dimensions of Islamic banking system, one of the results of this growth, established during 1970's in the world and 1980's in Turkey to attract the Muslims' money to the Islamic banks have become bigger and bigger. Although the Islamic banking system is based on the idea to make profits by giving loans from the funds collected as in conventional banking, it operates by using different tools and methods. The aim of the study is to analyze the problems of Islamic banks and their market shares in the sector and also to analyze the demand structure of the Islamic banks' customers in the Aegean region, one of the most imprtant regions of the country. One of the main reasons why this study focuses on this subject is that macro researches on this field are not enough while there are a great variety of academic researches analyzing the demand structure of Islamic banks' customers in different countries. The fact that there is not a valid model created by means of confirmatory factor analysis in structural equation modelling to determine the demand structure of Islamic banks in Turkey is also another factor for the study. In the study, therefore, a new scale model, "the reasons for preferences of Islamic banks," measured by 21 items under four dimensions has been confirmed. By this way, a new model has been offered to the researchers, academicians and Islamic banking in general. The study with this model has created a new area for the Islamic banks to use in determining their own customers and product policies. This study has analyzed the effective factors in the preferences of Islamic banks both in national and international literature frameworks. In the study, cronbach's alpha, t-test, variance and correlation analysis together with confirmatory factor analysis in structural equation modelling have been used to be able to determine preference reasons of Islamic banks by the scale used.