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How Islamic are Islamic banks? A non-linear assessment of Islamic rate - conventional rate relations

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dc.contributor.authorRaditya Sukmana
dc.contributor.authorMansor H. Ibrahim
dc.date.accessioned2017-09-19T15:11:32Z
dc.date.available2017-09-19T15:11:32Z
dc.date.issued2017
dc.description.abstractIn this paper, we perform a non-linear assessment of Islamic rate - conventional rate relations for the case of Malaysia. Using monthly data covering the period January 1999 to November 2016, we find strong evidence supporting non-linear reactions of the Islamic investment rates to conventional rates in the long run and/or short-run for all matched maturities. More precisely, the Islamic investment rates exhibit faster upward movement (slower downward movement) in responses to conventional deposit rate increases (decreases). The asymmetric pricing behaviour of Islamic banks however tends to weaken as maturity lengthens. Accordingly, we infer that Islamic banks do not rigidly peg their investment deposit rates to conventional deposit rates as some have claimed in questioning the Islamicity of Islamic banks.en_US
dc.identifier.citationSukmana, R., & Ibrahim, M. H. (2017). How Islamic are Islamic banks? A non-linear assessment of Islamic rate - conventional rate relations. Economic Modelling, 64, 443-448. https://doi.org/10.1016/j.econmod.2017.02.025
dc.identifier.doihttps://doi.org/10.1016/j.econmod.2017.02.025
dc.identifier.issn0264-9993
dc.identifier.urihttps://ikr.inceif.edu.my/handle/INCEIF/2691
dc.languageEnglish
dc.language.isoengen_US
dc.publisherScienceDirecten_US
dc.rights2017. ScienceDirect
dc.sourceSEDONA
dc.subjectIslamic banksen_US
dc.subjectIslamic investment ratesen_US
dc.subjectDeposit ratesen_US
dc.subjectNonlinear ARDLen_US
dc.titleHow Islamic are Islamic banks? A non-linear assessment of Islamic rate - conventional rate relationsen_US
dc.typeJournal Articleen_US
dlc.maintopicIslamic bankingen_US
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicIslamic bankingen_US
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