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Investigating the major determinants of islamic bank savings: Malaysian evidence

Author

Listed:
  • Aini, Sarah
  • Masih, Mansur

Abstract

This study attempts to determine the factors affecting the Islamic bank savings and deposits. Malaysia is taken as a case study. The standard time series techniques are used for the analysis. It is found that the Islamic bank savings and deposits are cointegrated i.e., theoretically related with money supply, CPI, profit rate of Islamic savings, base lending rate, Kuala Lumpur composite index. We evidence that the variable that has the most significant impact on Islamic bank savings is money supply. This is a significant finding in that the policy makers should monitor the changes of money supply periodically in order to determine the behaviour of Islamic bank savings.

Suggested Citation

  • Aini, Sarah & Masih, Mansur, 2018. "Investigating the major determinants of islamic bank savings: Malaysian evidence," MPRA Paper 105492, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:105492
    as

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    File URL: https://mpra.ub.uni-muenchen.de/105492/1/MPRA_paper_105492.pdf
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    References listed on IDEAS

    as
    1. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Islamic bank savings and deposits; determinants; VECM; VDC; Malaysia;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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