The Behavior of Conventional and Islamic Bank Deposit Returns in Malaysia and Turkey
This paper examines the empirical behavior of conventional bank deposit rates and the rate of return on retail Islamic profit-and-loss sharing (PLS) investment accounts in Malaysia and Turkey, using monthly data from January 1997 to August 2010. The analysis shows that conventional bank deposit rate...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2015-03-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijefi/issue/31967/352110?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| _version_ | 1797921957271830528 |
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| author | Serhan Cevik Joshua Charap |
| author_facet | Serhan Cevik Joshua Charap |
| author_sort | Serhan Cevik |
| collection | DOAJ |
| description | This paper examines the empirical behavior of conventional bank deposit rates and the rate of return on retail Islamic profit-and-loss sharing (PLS) investment accounts in Malaysia and Turkey, using monthly data from January 1997 to August 2010. The analysis shows that conventional bank deposit rates and PLS returns exhibit long-run cointegration and the time-varying volatility of conventional bank deposit rates and PLS returns is correlated and is statistically significant. The pairwise and multivariate causality tests show that conventional bank deposit rates Granger cause returns on PLS accounts. These findings have policy implications in terms of price stability and financial stability. |
| first_indexed | 2024-04-10T14:23:45Z |
| format | Article |
| id | doaj.art-30d7461acd8744f8a0766a42c1847bc2 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:23:45Z |
| publishDate | 2015-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-30d7461acd8744f8a0766a42c1847bc22023-02-15T16:09:10ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382015-03-01511111241032The Behavior of Conventional and Islamic Bank Deposit Returns in Malaysia and TurkeySerhan CevikJoshua CharapThis paper examines the empirical behavior of conventional bank deposit rates and the rate of return on retail Islamic profit-and-loss sharing (PLS) investment accounts in Malaysia and Turkey, using monthly data from January 1997 to August 2010. The analysis shows that conventional bank deposit rates and PLS returns exhibit long-run cointegration and the time-varying volatility of conventional bank deposit rates and PLS returns is correlated and is statistically significant. The pairwise and multivariate causality tests show that conventional bank deposit rates Granger cause returns on PLS accounts. These findings have policy implications in terms of price stability and financial stability.https://dergipark.org.tr/tr/pub/ijefi/issue/31967/352110?publisher=http-www-cag-edu-tr-ilhan-ozturkinterest rates islamic banks causality time-varying volatility correlation |
| spellingShingle | Serhan Cevik Joshua Charap The Behavior of Conventional and Islamic Bank Deposit Returns in Malaysia and Turkey International Journal of Economics and Financial Issues interest rates islamic banks causality time-varying volatility correlation |
| title | The Behavior of Conventional and Islamic Bank Deposit Returns in Malaysia and Turkey |
| title_full | The Behavior of Conventional and Islamic Bank Deposit Returns in Malaysia and Turkey |
| title_fullStr | The Behavior of Conventional and Islamic Bank Deposit Returns in Malaysia and Turkey |
| title_full_unstemmed | The Behavior of Conventional and Islamic Bank Deposit Returns in Malaysia and Turkey |
| title_short | The Behavior of Conventional and Islamic Bank Deposit Returns in Malaysia and Turkey |
| title_sort | behavior of conventional and islamic bank deposit returns in malaysia and turkey |
| topic | interest rates islamic banks causality time-varying volatility correlation |
| url | https://dergipark.org.tr/tr/pub/ijefi/issue/31967/352110?publisher=http-www-cag-edu-tr-ilhan-ozturk |
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