The Nexus Between Rates of Return on Deposits of Islamic Banks and Interest Rates on Deposits of Conventional Banks in a Dual Banking System: A Cross Country Study
The paper investigates the existence of a long-run relationship between conventional interest rates and rates of return on deposit of Islamic banks in the contemporary dual banking systems on a cross-country basis. The study employs ARDL (Autoregressive Distributed Lag) modeling approach to cointeg...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2016-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/2697 |
| _version_ | 1797918155774885888 |
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| author | Abdurraheem, Abdulazeez Adewuyi Asmadi, Mohamed Naim |
| author_facet | Abdurraheem, Abdulazeez Adewuyi Asmadi, Mohamed Naim |
| author_sort | Abdurraheem, Abdulazeez Adewuyi |
| collection | DOAJ |
| description |
The paper investigates the existence of a long-run relationship between conventional interest rates and rates of return on deposit of Islamic banks in the contemporary dual banking systems on a cross-country basis. The study employs ARDL (Autoregressive Distributed Lag) modeling approach to cointegration analysis. The study finds the existence of the long run relationship between rates of return on deposits of Islamic banks and interest rates on deposits of conventional banks during the period 2007 – 2015. The study also finds a bidirectional causal relationship running between rates of return on deposits of Islamic banks and conventional interest rates. The study statistically provides empirical insight into the relationship between the rate of return on deposits of Islamic banks and the conventional interest rate on a cross-country basis using an ARDL model.
Keywords: Dual banking, Co-integration, ARDL, Malaysia, Indonesia, Bahrain
JEL Classification: G2
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| first_indexed | 2024-04-10T13:26:06Z |
| format | Article |
| id | doaj.art-b33ba7c6bb534fe2969b5b9ef9cd6de0 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:26:06Z |
| publishDate | 2016-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-b33ba7c6bb534fe2969b5b9ef9cd6de02023-02-15T16:11:52ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382016-07-0164SThe Nexus Between Rates of Return on Deposits of Islamic Banks and Interest Rates on Deposits of Conventional Banks in a Dual Banking System: A Cross Country StudyAbdurraheem, Abdulazeez AdewuyiAsmadi, Mohamed Naim The paper investigates the existence of a long-run relationship between conventional interest rates and rates of return on deposit of Islamic banks in the contemporary dual banking systems on a cross-country basis. The study employs ARDL (Autoregressive Distributed Lag) modeling approach to cointegration analysis. The study finds the existence of the long run relationship between rates of return on deposits of Islamic banks and interest rates on deposits of conventional banks during the period 2007 – 2015. The study also finds a bidirectional causal relationship running between rates of return on deposits of Islamic banks and conventional interest rates. The study statistically provides empirical insight into the relationship between the rate of return on deposits of Islamic banks and the conventional interest rate on a cross-country basis using an ARDL model. Keywords: Dual banking, Co-integration, ARDL, Malaysia, Indonesia, Bahrain JEL Classification: G2 https://econjournals.com/index.php/ijefi/article/view/2697 |
| spellingShingle | Abdurraheem, Abdulazeez Adewuyi Asmadi, Mohamed Naim The Nexus Between Rates of Return on Deposits of Islamic Banks and Interest Rates on Deposits of Conventional Banks in a Dual Banking System: A Cross Country Study International Journal of Economics and Financial Issues |
| title | The Nexus Between Rates of Return on Deposits of Islamic Banks and Interest Rates on Deposits of Conventional Banks in a Dual Banking System: A Cross Country Study |
| title_full | The Nexus Between Rates of Return on Deposits of Islamic Banks and Interest Rates on Deposits of Conventional Banks in a Dual Banking System: A Cross Country Study |
| title_fullStr | The Nexus Between Rates of Return on Deposits of Islamic Banks and Interest Rates on Deposits of Conventional Banks in a Dual Banking System: A Cross Country Study |
| title_full_unstemmed | The Nexus Between Rates of Return on Deposits of Islamic Banks and Interest Rates on Deposits of Conventional Banks in a Dual Banking System: A Cross Country Study |
| title_short | The Nexus Between Rates of Return on Deposits of Islamic Banks and Interest Rates on Deposits of Conventional Banks in a Dual Banking System: A Cross Country Study |
| title_sort | nexus between rates of return on deposits of islamic banks and interest rates on deposits of conventional banks in a dual banking system a cross country study |
| url | https://econjournals.com/index.php/ijefi/article/view/2697 |
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