Monetary transmission during low interest rate environment in a dual banking system: evidence from Malaysia

This study aims to determine the role of bank loans in the transmission of monetary policy in an environment of low interest rate in the context of a dual banking system in Malaysia. By adopting a balanced panel data approach applied on data covering the period from 2000 to 2011, the study finds...

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Main Authors:	Asbeig, Hussam, Kassim, Salina
Format:	Article
Language:	English
Published:	Taylor & Francis 2015
Subjects:	HB3711 Business cycles. Economic fluctuations HG178 Liquidity
Online Access:	http://irep.iium.edu.my/46094/ http://irep.iium.edu.my/46094/ http://irep.iium.edu.my/46094/ http://irep.iium.edu.my/46094/1/021a_MFEME_Hussam-Kassim_2015.pdf

id	iium-46094
recordtype	eprints
spelling	iium-460942017-08-08T02:38:35Z http://irep.iium.edu.my/46094/ Monetary transmission during low interest rate environment in a dual banking system: evidence from Malaysia Asbeig, Hussam Kassim, Salina HB3711 Business cycles. Economic fluctuations HG178 Liquidity This study aims to determine the role of bank loans in the transmission of monetary policy in an environment of low interest rate in the context of a dual banking system in Malaysia. By adopting a balanced panel data approach applied on data covering the period from 2000 to 2011, the study finds that changes in the monetary policy have no significant impact on the level of financing extended by the Islamic and conventional banks. However, bank-specific factors, namely size and liquidity play an important role in influencing the lending behaviour of both the Islamic and conventional banks, whereas capitalization is relevant only for the Islamic banks. Findings of the study provide important input for effective monetary policy implementation in countries with increasing presence of the Islamic banks. Taylor & Francis 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/46094/1/021a_MFEME_Hussam-Kassim_2015.pdf Asbeig, Hussam and Kassim, Salina (2015) Monetary transmission during low interest rate environment in a dual banking system: evidence from Malaysia. Macroeconomics and Finance in Emerging Market Economies. pp. 1-11. ISSN 1752-0851 (O), 1752-0843 (P) http://www.tandfonline.com/loi/reme20 http://dx.doi.org/10.1080/17520843.2015.1060248
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB3711 Business cycles. Economic fluctuations HG178 Liquidity
spellingShingle	HB3711 Business cycles. Economic fluctuations HG178 Liquidity Asbeig, Hussam Kassim, Salina Monetary transmission during low interest rate environment in a dual banking system: evidence from Malaysia
description	This study aims to determine the role of bank loans in the transmission of monetary policy in an environment of low interest rate in the context of a dual banking system in Malaysia. By adopting a balanced panel data approach applied on data covering the period from 2000 to 2011, the study finds that changes in the monetary policy have no significant impact on the level of financing extended by the Islamic and conventional banks. However, bank-specific factors, namely size and liquidity play an important role in influencing the lending behaviour of both the Islamic and conventional banks, whereas capitalization is relevant only for the Islamic banks. Findings of the study provide important input for effective monetary policy implementation in countries with increasing presence of the Islamic banks.
format	Article
author	Asbeig, Hussam Kassim, Salina
author_facet	Asbeig, Hussam Kassim, Salina
author_sort	Asbeig, Hussam
title	Monetary transmission during low interest rate environment in a dual banking system: evidence from Malaysia
title_short	Monetary transmission during low interest rate environment in a dual banking system: evidence from Malaysia
title_full	Monetary transmission during low interest rate environment in a dual banking system: evidence from Malaysia
title_fullStr	Monetary transmission during low interest rate environment in a dual banking system: evidence from Malaysia
title_full_unstemmed	Monetary transmission during low interest rate environment in a dual banking system: evidence from Malaysia
title_sort	monetary transmission during low interest rate environment in a dual banking system: evidence from malaysia
publisher	Taylor & Francis
publishDate	2015
url	http://irep.iium.edu.my/46094/ http://irep.iium.edu.my/46094/ http://irep.iium.edu.my/46094/ http://irep.iium.edu.my/46094/1/021a_MFEME_Hussam-Kassim_2015.pdf
first_indexed	2023-09-18T21:05:36Z
last_indexed	2023-09-18T21:05:36Z
_version_	1777410912415645696

Monetary transmission during low interest rate environment in a dual banking system: evidence from Malaysia

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