Interest rate and loan supply: Islamic versus conventional banking system

This paper attempts to explore the effect of interest rate on loan supply of Islamic banking and Conventional banking system. The analysis segregated the Islamic and Conventional banking system into commercial bank, finance company and merchant bank. Overnight and 3 month Klibor are used as interest...

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Main Authors:	Liza Marwati Mohd Yusoff, Aisyah Abdul Rahman, Norazlan Alias
Format:	Article
Published:	Penerbit Universiti Kebangsaan Malaysia 2001
Online Access:	http://journalarticle.ukm.my/4665/ http://journalarticle.ukm.my/4665/

id	ukm-4665
recordtype	eprints
spelling	ukm-46652012-05-14T04:31:39Z http://journalarticle.ukm.my/4665/ Interest rate and loan supply: Islamic versus conventional banking system Liza Marwati Mohd Yusoff, Aisyah Abdul Rahman, Norazlan Alias, This paper attempts to explore the effect of interest rate on loan supply of Islamic banking and Conventional banking system. The analysis segregated the Islamic and Conventional banking system into commercial bank, finance company and merchant bank. Overnight and 3 month Klibor are used as interest proxy. Unit root test, Granger Causality test, Akaike Information Criterion and Regression analysist are used in the study. The results of Granger Causality test indicate that the growth of overnight Klibor causes changes in the growth of Islamic and Conventional loan of Merchant Banks significantly and from the regression analysis, it is confirm that Islamic and Conventional loan growth of merchant bank are significantly positive related to overnight Klibor. Penerbit Universiti Kebangsaan Malaysia 2001 Article PeerReviewed Liza Marwati Mohd Yusoff, and Aisyah Abdul Rahman, and Norazlan Alias, (2001) Interest rate and loan supply: Islamic versus conventional banking system. Jurnal Ekonomi Malaysia, 35 . ISSN 0127-1962 http://www.ukm.my/penerbit/jem35-04.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
description	This paper attempts to explore the effect of interest rate on loan supply of Islamic banking and Conventional banking system. The analysis segregated the Islamic and Conventional banking system into commercial bank, finance company and merchant bank. Overnight and 3 month Klibor are used as interest proxy. Unit root test, Granger Causality test, Akaike Information Criterion and Regression analysist are used in the study. The results of Granger Causality test indicate that the growth of overnight Klibor causes changes in the growth of Islamic and Conventional loan of Merchant Banks significantly and from the regression analysis, it is confirm that Islamic and Conventional loan growth of merchant bank are significantly positive related to overnight Klibor.
format	Article
author	Liza Marwati Mohd Yusoff, Aisyah Abdul Rahman, Norazlan Alias,
spellingShingle	Liza Marwati Mohd Yusoff, Aisyah Abdul Rahman, Norazlan Alias, Interest rate and loan supply: Islamic versus conventional banking system
author_facet	Liza Marwati Mohd Yusoff, Aisyah Abdul Rahman, Norazlan Alias,
author_sort	Liza Marwati Mohd Yusoff,
title	Interest rate and loan supply: Islamic versus conventional banking system
title_short	Interest rate and loan supply: Islamic versus conventional banking system
title_full	Interest rate and loan supply: Islamic versus conventional banking system
title_fullStr	Interest rate and loan supply: Islamic versus conventional banking system
title_full_unstemmed	Interest rate and loan supply: Islamic versus conventional banking system
title_sort	interest rate and loan supply: islamic versus conventional banking system
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2001
url	http://journalarticle.ukm.my/4665/ http://journalarticle.ukm.my/4665/
first_indexed	2023-09-18T19:42:09Z
last_indexed	2023-09-18T19:42:09Z
_version_	1777405661743677440

Interest rate and loan supply: Islamic versus conventional banking system

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