Solarin, Sakiru Adebola and Hammoudeh, Shawkat and Shahbaz, Muhammad,(2018), Influence of economic factors on disaggregated Islamic banking deposits: Evidence with structural breaks in Malaysia. , J. Int. Financ. Markets Inst. Money, UNSPECIFIED
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Abstract
This paper contributes to the existing empirical literature on savings and Islamic banking
systems by comprehensively examining the determinants of Islamic banking deposits in
Malaysia. Initially, we examine the factors affecting the deposits in Islamic banking by
types, which include investment deposits, demand deposits, savings deposits, ringgit
Tawarruq deposits, dollar Tawarruq deposits and negotiable instrument deposits.
Additionally, we investigate the determinants of deposits in Islamic banking by holders
including household deposits, business deposits, financial institution deposits, federal
government deposits, state government deposits and statutory agency deposits. We also
examine the factors affecting the total deposits in the Islamic banking system. After
confirming that the variables are stationary in the first difference through the use of the
residual augmented least squares (RALS) procedure of Meng et al. (2014), we use the
break-augmented cointegration methods of Johansen et al. (2000) and Giles and Godwin
(2012) to check the cointegrating relationships and generate the long run coefficients of
the variables. The results show that industrial production index, real interest rates on fixed
and savings deposits have positive impacts on several components of Islamic banking
deposits and the total deposits of Islamic banks, while real interest rates on deposits in
commercial banks have a negative impact. However, the roles of both the Shariah index
and the real exchange rate are mixed.
Keywords : | Islamic banking system Islamic deposits Macroeconomic factors Structural Breaks, UNSPECIFIED |
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Journal or Publication Title: | J. Int. Financ. Markets Inst. Money |
Volume: | 55 |
Number: | UNSPECIFIED |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Nila Nurjanah |
Date Deposited: | 19 Dec 2019 07:26 |
Last Modified: | 19 Dec 2019 07:26 |
URI: | https://repofeb.undip.ac.id/id/eprint/400 |