The Dynamic Link Between Islamic and Conventional Deposit Rates in a Dual Banking System
نویسندگان
چکیده
Purpose — This study empirically assesses the extent to which conventional deposit rate (CDR) affects Islamic (IDR) in Indonesia and Malaysia within dual banking system.
 Design/Methodology/Approach uses non-linear autoregressive distributed lag (NARDL) panel cointegration. Monthly data are employed, but time period for two countries examined is different because of availability. The thus covers 2009:M1 2020:M12 2000:M1 Malaysia.
 Findings findings confirm evidence long-run link between IDR CDR, where IDRs asymmetrically respond changes CDRs. In addition, Indonesia’s adjust faster response decline CDRs compared increases However, Malaysia’s adapt than their decreases. cointegration results reinforce asymmetric findings.
 Originality/Value To best our knowledge, this paper first examine a baking system Practical Implications banks (IBs) follow determining due uncompetitive IDRs, implying that IBs suffer from displaced commercial risk. Therefore, may adopt policy address liquidity issues through investment risk reserves (IRR) profit equalization (PER) reduce distinctive gap
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ژورنال
عنوان ژورنال: ISRA international journal of Islamic finance
سال: 2023
ISSN: ['2289-4365', '0128-1976']
DOI: https://doi.org/10.55188/ijif.v15i1.487