Monetary policy shocks and Islamic banks' deposits in a dual banking system: empirical evidence from Malaysia and Bahrain

The objective of this paper is to empirically explore the dynamic inter-relationships between deposits of Islamic banks with monetary policy variables in Bahrain and Malaysia covering are being dubbed as the worlds' largest International Islamic Financial Hubs (Qorchi, 2005). A comparative anal...

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Main Authors:	Mohd Yusof, Rosylin, Al Wosabi, Mohammed, Abd. Majid, M. Shabri
Format:	Article
Language:	English
Published:	The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) 2009
Subjects:	H Social Sciences (General) HB Economic Theory HC Economic History and Conditions
Online Access:	http://irep.iium.edu.my/8112/ http://irep.iium.edu.my/8112/ http://irep.iium.edu.my/8112/1/Monetary_policy_shocks_and_Islamic_banks%27_deposits_in_a_dual_banking_system_Empirical_evidence_from_Malaysia_and_Bahrain.pdf

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spelling	iium-81122012-04-18T07:47:49Z http://irep.iium.edu.my/8112/ Monetary policy shocks and Islamic banks' deposits in a dual banking system: empirical evidence from Malaysia and Bahrain Mohd Yusof, Rosylin Al Wosabi, Mohammed Abd. Majid, M. Shabri H Social Sciences (General) HB Economic Theory HC Economic History and Conditions The objective of this paper is to empirically explore the dynamic inter-relationships between deposits of Islamic banks with monetary policy variables in Bahrain and Malaysia covering are being dubbed as the worlds' largest International Islamic Financial Hubs (Qorchi, 2005). A comparative analysis between these two countries highlights the differences and similarities of the impact of monetary policy shocks on the Islamic banks' deposits. The analysis comprises of two major testing approaches. First, the auto-regressive distributed lag (ARDL) model is used to examine the long-run dynamics among the variables. Compared to the Malaysian Islamic banks' deposits, the study finds that the Islamic banks' deposits in Bahrain are sensitive to monetary policy changes. This implies that the Bahraini Islamic banks are less capable of offset the destabilizing impact of monetary policy as compared to its Malaysian counterpart. The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) 2009 Article PeerReviewed application/pdf en http://irep.iium.edu.my/8112/1/Monetary_policy_shocks_and_Islamic_banks%27_deposits_in_a_dual_banking_system_Empirical_evidence_from_Malaysia_and_Bahrain.pdf Mohd Yusof, Rosylin and Al Wosabi, Mohammed and Abd. Majid, M. Shabri (2009) Monetary policy shocks and Islamic banks' deposits in a dual banking system: empirical evidence from Malaysia and Bahrain. Journal of Economic Cooperation and Development, 30 (2). pp. 1-26. ISSN 1308-7800 http://www.sesric.org/files/article/306.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	H Social Sciences (General) HB Economic Theory HC Economic History and Conditions
spellingShingle	H Social Sciences (General) HB Economic Theory HC Economic History and Conditions Mohd Yusof, Rosylin Al Wosabi, Mohammed Abd. Majid, M. Shabri Monetary policy shocks and Islamic banks' deposits in a dual banking system: empirical evidence from Malaysia and Bahrain
description	The objective of this paper is to empirically explore the dynamic inter-relationships between deposits of Islamic banks with monetary policy variables in Bahrain and Malaysia covering are being dubbed as the worlds' largest International Islamic Financial Hubs (Qorchi, 2005). A comparative analysis between these two countries highlights the differences and similarities of the impact of monetary policy shocks on the Islamic banks' deposits. The analysis comprises of two major testing approaches. First, the auto-regressive distributed lag (ARDL) model is used to examine the long-run dynamics among the variables. Compared to the Malaysian Islamic banks' deposits, the study finds that the Islamic banks' deposits in Bahrain are sensitive to monetary policy changes. This implies that the Bahraini Islamic banks are less capable of offset the destabilizing impact of monetary policy as compared to its Malaysian counterpart.
format	Article
author	Mohd Yusof, Rosylin Al Wosabi, Mohammed Abd. Majid, M. Shabri
author_facet	Mohd Yusof, Rosylin Al Wosabi, Mohammed Abd. Majid, M. Shabri
author_sort	Mohd Yusof, Rosylin
title	Monetary policy shocks and Islamic banks' deposits in a dual banking system: empirical evidence from Malaysia and Bahrain
title_short	Monetary policy shocks and Islamic banks' deposits in a dual banking system: empirical evidence from Malaysia and Bahrain
title_full	Monetary policy shocks and Islamic banks' deposits in a dual banking system: empirical evidence from Malaysia and Bahrain
title_fullStr	Monetary policy shocks and Islamic banks' deposits in a dual banking system: empirical evidence from Malaysia and Bahrain
title_full_unstemmed	Monetary policy shocks and Islamic banks' deposits in a dual banking system: empirical evidence from Malaysia and Bahrain
title_sort	monetary policy shocks and islamic banks' deposits in a dual banking system: empirical evidence from malaysia and bahrain
publisher	The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC)
publishDate	2009
url	http://irep.iium.edu.my/8112/ http://irep.iium.edu.my/8112/ http://irep.iium.edu.my/8112/1/Monetary_policy_shocks_and_Islamic_banks%27_deposits_in_a_dual_banking_system_Empirical_evidence_from_Malaysia_and_Bahrain.pdf
first_indexed	2023-09-18T20:17:45Z
last_indexed	2023-09-18T20:17:45Z
_version_	1777407901857480704

Monetary policy shocks and Islamic banks' deposits in a dual banking system: empirical evidence from Malaysia and Bahrain

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