The impact of crisis and macroeconomic variables toward Islamic banking deposits.

The nature of Islamic banks is different from conventional banks which may lead to a different deposit behavior of their depositors. This study aims to analyze the dynamic effects of interest and profit rate changes, production level, inflation and financial crisis towards the fluctuation of total d...

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Main Authors:	Abduh, Muhamad, Omar, Mohd. Azmi, Duasa, Jarita
Format:	Conference or Workshop Item
Language:	English
Published:	2013
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/30752/ http://irep.iium.edu.my/30752/1/Abduh_Poster_No_2.pptx

id	iium-30752
recordtype	eprints
spelling	iium-307522013-09-13T06:54:31Z http://irep.iium.edu.my/30752/ The impact of crisis and macroeconomic variables toward Islamic banking deposits. Abduh, Muhamad Omar, Mohd. Azmi Duasa, Jarita HG1501 Banking The nature of Islamic banks is different from conventional banks which may lead to a different deposit behavior of their depositors. This study aims to analyze the dynamic effects of interest and profit rate changes, production level, inflation and financial crisis towards the fluctuation of total deposits in Malaysian Islamic banks. Using monthly data from January 2000 to December 2010, cointegration test and vector error correction model were utilized to uncover the dynamic relationship between macroeconomic variables and crisis with total deposit of Islamic banking. The results show that changes in interest and profit rate as well as production growth has no significant effects. Meanwhile, inflation has negative effect on total deposits of Islamic banks which reflects the changes on depositors’ consumption pattern during the recession. Interestingly, financial crisis is positively affecting total deposits in Islamic banks. This study provides evidence of general consumer sentiment and deposit behavior. It indicates that in general, due to the 1997/1998 financial crisis experience, bank depositors have trusted Islamic banking to be more resilient in facing financial crisis and hence, inflow of deposits to Islamic banks was happened during 2007/2008 financial crisis. 2013-02 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/30752/1/Abduh_Poster_No_2.pptx Abduh, Muhamad and Omar, Mohd. Azmi and Duasa, Jarita (2013) The impact of crisis and macroeconomic variables toward Islamic banking deposits. In: IIUM Research, Invention and Innovation Exhibition (IRIIE) 2013, 19-20th February 2013, Cultural Activity Centre (CAC) and KAED Gallery, IIUM.
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Abduh, Muhamad Omar, Mohd. Azmi Duasa, Jarita The impact of crisis and macroeconomic variables toward Islamic banking deposits.
description	The nature of Islamic banks is different from conventional banks which may lead to a different deposit behavior of their depositors. This study aims to analyze the dynamic effects of interest and profit rate changes, production level, inflation and financial crisis towards the fluctuation of total deposits in Malaysian Islamic banks. Using monthly data from January 2000 to December 2010, cointegration test and vector error correction model were utilized to uncover the dynamic relationship between macroeconomic variables and crisis with total deposit of Islamic banking. The results show that changes in interest and profit rate as well as production growth has no significant effects. Meanwhile, inflation has negative effect on total deposits of Islamic banks which reflects the changes on depositors’ consumption pattern during the recession. Interestingly, financial crisis is positively affecting total deposits in Islamic banks. This study provides evidence of general consumer sentiment and deposit behavior. It indicates that in general, due to the 1997/1998 financial crisis experience, bank depositors have trusted Islamic banking to be more resilient in facing financial crisis and hence, inflow of deposits to Islamic banks was happened during 2007/2008 financial crisis.
format	Conference or Workshop Item
author	Abduh, Muhamad Omar, Mohd. Azmi Duasa, Jarita
author_facet	Abduh, Muhamad Omar, Mohd. Azmi Duasa, Jarita
author_sort	Abduh, Muhamad
title	The impact of crisis and macroeconomic variables toward Islamic banking deposits.
title_short	The impact of crisis and macroeconomic variables toward Islamic banking deposits.
title_full	The impact of crisis and macroeconomic variables toward Islamic banking deposits.
title_fullStr	The impact of crisis and macroeconomic variables toward Islamic banking deposits.
title_full_unstemmed	The impact of crisis and macroeconomic variables toward Islamic banking deposits.
title_sort	impact of crisis and macroeconomic variables toward islamic banking deposits.
publishDate	2013
url	http://irep.iium.edu.my/30752/ http://irep.iium.edu.my/30752/1/Abduh_Poster_No_2.pptx
first_indexed	2023-09-18T20:44:59Z
last_indexed	2023-09-18T20:44:59Z
_version_	1777409614605713408

The impact of crisis and macroeconomic variables toward Islamic banking deposits.

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