Determinants of deposits in conventional and Islamic banking: a case of an emerging economy

Akhtar, Beenish; Akhter, Waheed; Shahbaz, Muhammad

doi:10.1108/ijoem-04-2015-0059

Cited by 41 publications

(29 citation statements)

References 40 publications

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“…Muhamad Abduh, Mohd Omar and Duasa (2011), Chong and Liu (2009) and, Zainol and Kassim (2010) indicated in their researches for the IB system prevalent in Malaysia that any change in the interest on deposits has a negative impact on the IB system. Similarly, Kasri and Kassim (2009) and, Akhtar, Akhter and Shahbaz (2017) reached the same conclusion in their studies for Indonesia and Pakistan, respectively. Aysan, Dişli and Ozturk (2014) studied the behavioural aspect of IB depositors within the dual banking system.…”

Section: Introductionsupporting

confidence: 69%

The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach

Demirdogen¹,

Kaplan²

2020

TUJISE

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Participation banks are in the same financial environment with the conventional banks, so the macroeconomic variables are expected to affect the participation funds. The purpose of this study is to examine the relationship between participation funds and macroeconomic variables for Turkey. The relation between the total Turkish currency funds in participation banks and macroeconomic variables is examined using the weekly data series from 10th of July 2015 to 5th of November 2018 by applying VAR and SVAR analysis. The total amount of the deposits of participation banks, weighted average interest rates, Borsa Istanbul gold prices, deposit interest rates of conventional banks, M2 defined money supply and total foreign exchange reserves of Central Bank of the Turkish Republic and USD exchange rate data were used as the secondary data tools. As a result of the VAR analysis, it was found that the total deposits of Islamic banks are primarily affected by money supply and the quarterly deposit interest rates of conventional banks. The SVAR analysis on the basis of these variables reveals that there is a positive correlation between money supply and participation funds while the relation is negative with the quarterly deposit interest rates of conventional banks and the participation funds. According to these analyses, participation funds benefit from the expansionary monetary policy, however; the interest rate policy of conventional banks negatively affects the fund inflow of the Islamic banks.

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Section: Introductionsupporting

confidence: 69%

The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach

Demirdogen¹,

Kaplan²

2020

TUJISE

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“…Hasil regresi linear menunjukkan bahwa ROA memiliki hubungan yang positif dan signifikanterhadap penghimpunan DPK pada bank syariah dengan nilai koefisien sebesar 0.168dan Prob adalah 0.000 < dari nilai α = 0.05 sehingga hipotesis 2 diterima. Hal tersebut sejalan dengan hasil penelitian-penelitian sebelumnya yang dilakukan oleh (Susanti, 2015)dan (Akhtar et al, 2017)yang menyatakan bahwa kenaikan profitabilitas atau tingkat keuntungan pada bank syariah akan berdampak secara langsungterhadap peningkatan jumlah DPK.…”

Section: Interpretasi Model(hasil Uji T Dan Uji F)unclassified

Apakah Sukuk Ritel Merupakan Ancaman Bagi penghimpunan Dana Pihak Ketiga Pada Bank Syariah?

Syakur

2020

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This research is a quantitative study that aims to consider the effect of retail sukuk on the collection of third parties funds (TPF) in Indonesian Islamic Banks for 2015 - 2019. The data used are secondary data retrieved from Islamic Banking Statistics Report for shariah commercial and unit shariah bank quarterly. The method is multiple linear regression analysis techniques with Ordinary Least Square (OLS) approach, using TPF as the dependent variable while Retail Sukuk, ROA, Promotion Cost, Inflation and Bi rate as the independent variables. The results shows Retail Sukuk has a negative and significant impact on the collection of TPF which is intended that retail sukuk is causing the decrease of TPF amount in Indonesian Islamic bank. Therefore the Indonesian government needs to review the policies related to retail sukuk issuance in order to synergize with the development of Islamic Banks. Other results indicate that ROA and promotion costs have positive and significant influance for TPF collection in Indonesian Islamic bank while BI rate is the opposite.

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“…In Pakistan, savings do not affect government budget deficit significantly whereas remittances received to government play a necessary part to increase the saving's level in the country. Akhtar, Akhter, and Shahbaz (2017), investigated Pakistan for the influence of major selected macroeconomic variables on the deposits of conventional and Islamic banks. The researchers took quarterly data of Six years from 2006 to 2010 of 30 banks consisting of 25 conventional and 5 Islamic banks.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Macroeconomic Factors on the Growth of Islamic Banking: A Case of Pakistan

Zahid¹,

Basit²

2018

j.financ.econ.res

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The present paper attempts to investigate the impact of some selected macroeconomic factors on the growth of Islamic Banking. The Islamic banking is one of the most rapidly growing segment of the economy nowadays particularly in Pakistan and other Islamic countries around the world. Therefore, the aim of our current study is to investigate whether macroeconomic variables influence the growth of Islamic banking in Pakistan or not. For that purpose, we used seven macroeconomic factors such as, gross domestic product, Muslim population, inflation rate, money supply, total savings, interest rates, and remittances. These variables are used because they directly or indirectly influence the Islamic finance system of the country. Annual data spanning from 1985 to 2015 for six Islamic banks were used. After confirming the stationarity and long run association, we estimate model by using error correction model (ECM). Results reveal that Muslim population, GDP growth, money supply and worker's remittances play a positive and significant role in the development of Islamic banking in Pakistan. However, interest rates, savings and inflation are inversely related to the growth of Islamic banks. These empirical findings can have some important policy implications.

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Determinants of deposits in conventional and Islamic banking: a case of an emerging economy

Cited by 41 publications

References 40 publications

The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach

The Relationship between Participation Funds and Macroeconomic Variables: SVAR Analysis Approach

Apakah Sukuk Ritel Merupakan Ancaman Bagi penghimpunan Dana Pihak Ketiga Pada Bank Syariah?

Impact of Macroeconomic Factors on the Growth of Islamic Banking: A Case of Pakistan

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