Access to this document was granted through an Emerald subscription provided by 405387 []
For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.
Purpose -The objective of this study is to investigate the impact of selected economic variables on deposits level in the Islamic and conventional banking systems in Malaysia. Design/methodology/approach -Both long-and short-run relationships between these variables are measured by using advanced time series econometrics. These techniques are co-integration and error correction framework, which are conducted within the vector autoregression framework. Findings -By applying recent econometric techniques, we find determinants such as rates of profit of Islamic bank, rates of interest on deposits of conventional bank, base lending rate, Kuala Lumpur composite index, consumer price index, money supply and gross domestic product have different impact on deposits at both Islamic and conventional banking systems. In most cases, customers of conventional system behave in conformity with the savings behaviour theories. In contrast, most of these theories are not applicable to Islamic banking customers. Therefore, there is a possibility that religious belief plays an important role in the banking decisions of Muslim customers. Research limitations/implications -As customers are sensitive to rewards, they receive from their deposits, rates of profit of Islamic system must at any time be similar to those of the conventional system. Finally, religious dimension can be considered as an important element to attract more people to deposit their funds in the Islamic system. Originality/value -To the best of the authors' knowledge, this is the first attempt to empirically examine the depositor's behaviour in the Islamic banking environment.
Data Envelopment Analysis (DEA) Approach is used to estimate the overall, pure technical and scale efficiencies for Malaysian commercial banks during the period 2000-2006. The results suggest that domestic banks were relatively more efficient than foreign banks. Our results also suggest that domestic banks' inefficiency were attributed to pure technical inefficiency rather than scale inefficiency. In contrast, foreign banks inefficiency is attributed to scale inefficiency rather than pure technical inefficiency. The study further examines whether the domestic and foreign banks are drawn from the same environment by performing a series of parametric and non-parametric tests. The results from the parametric and non-parametric tests suggest that for the years 2000-2004, both domestic and foreign banks possessed the same technology whereas results for 2005 and 2006 suggest otherwise. This implies that banks in recent years have had access to different and more efficient technology.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.