Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter?

This paper attempts to examine factors that influence deposit behaviour of bank depositors in Indonesia Islamic banking. Several explanatory variables are tested namely interest rate, Islamic deposit rate, inflation, income as well as financial crisis. Cointegration test and impulse response functio...

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Main Authors:	Abduh, Muhamad, Sukmana, Raditya
Format:	Conference or Workshop Item
Language:	English
Published:	2011
Subjects:	BP173.75 Islam and economics HB131 Methodology.Mathematical economics. Quantitative methods HG1501 Banking
Online Access:	http://irep.iium.edu.my/24033/ http://irep.iium.edu.my/24033/ http://irep.iium.edu.my/24033/1/Abduh_and_Sukmana%2C_FRPS_2011.pdf

id	iium-24033
recordtype	eprints
spelling	iium-240332012-05-16T09:11:17Z http://irep.iium.edu.my/24033/ Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter? Abduh, Muhamad Sukmana, Raditya BP173.75 Islam and economics HB131 Methodology.Mathematical economics. Quantitative methods HG1501 Banking This paper attempts to examine factors that influence deposit behaviour of bank depositors in Indonesia Islamic banking. Several explanatory variables are tested namely interest rate, Islamic deposit rate, inflation, income as well as financial crisis. Cointegration test and impulse response functions are utilized to examine the long run and short run relationship among the variables. The period of analysis is from December 2000 to January 2011 (122 number of observation-monthly data). The results show that crisis has no significant impact on the volatility of Islamic banks deposits. This suggests that the Islamic banks’ expansion towards the real economic activities by partnership contracts is one of the best practices. It depicts also that depositors have a strong believe towards the resilience of Islamic banks against financial crisis and thus, they did not withdraw their money excessively during the crisis. However, it is also found that interest rate and income are still dominating the people’s decision to deposit their funds in Islamic banks which in turns, indicating the effectiveness of the anti-riba campaign in Indonesia is still low and thus, the strategy of educating the people need to be redesigned. 2011-12-16 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/24033/1/Abduh_and_Sukmana%2C_FRPS_2011.pdf Abduh, Muhamad and Sukmana, Raditya (2011) Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter? In: Indonesia Islamic Banking Research Forum 2011, 16-17 December, 2011, Padjajaran University, Bandung. http://www.fe.unpad.ac.id/upload/file/Rundown%20FRPS%20English%20Version.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	BP173.75 Islam and economics HB131 Methodology.Mathematical economics. Quantitative methods HG1501 Banking
spellingShingle	BP173.75 Islam and economics HB131 Methodology.Mathematical economics. Quantitative methods HG1501 Banking Abduh, Muhamad Sukmana, Raditya Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter?
description	This paper attempts to examine factors that influence deposit behaviour of bank depositors in Indonesia Islamic banking. Several explanatory variables are tested namely interest rate, Islamic deposit rate, inflation, income as well as financial crisis. Cointegration test and impulse response functions are utilized to examine the long run and short run relationship among the variables. The period of analysis is from December 2000 to January 2011 (122 number of observation-monthly data). The results show that crisis has no significant impact on the volatility of Islamic banks deposits. This suggests that the Islamic banks’ expansion towards the real economic activities by partnership contracts is one of the best practices. It depicts also that depositors have a strong believe towards the resilience of Islamic banks against financial crisis and thus, they did not withdraw their money excessively during the crisis. However, it is also found that interest rate and income are still dominating the people’s decision to deposit their funds in Islamic banks which in turns, indicating the effectiveness of the anti-riba campaign in Indonesia is still low and thus, the strategy of educating the people need to be redesigned.
format	Conference or Workshop Item
author	Abduh, Muhamad Sukmana, Raditya
author_facet	Abduh, Muhamad Sukmana, Raditya
author_sort	Abduh, Muhamad
title	Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter?
title_short	Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter?
title_full	Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter?
title_fullStr	Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter?
title_full_unstemmed	Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter?
title_sort	deposit behaviour in indonesia islamic banking : do crisis and fatwa matter?
publishDate	2011
url	http://irep.iium.edu.my/24033/ http://irep.iium.edu.my/24033/ http://irep.iium.edu.my/24033/1/Abduh_and_Sukmana%2C_FRPS_2011.pdf
first_indexed	2023-09-18T20:36:08Z
last_indexed	2023-09-18T20:36:08Z
_version_	1777409058350825472

Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter?

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