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The Behavior of Conventional and Islamic Bank Deposit Returns in Malaysia and Turkey, Joshua Charap, Serhan Cevik

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Abstract
This paper examines the empirical behavior of conventional bank deposit rates and the rate of return on retail Islamic profit-and-loss sharing (PLS) investment accounts in Malaysia and Turkey, using monthly data from January 1997 to August 2010. The analysis shows that conventional bank deposit rates and PLS returns exhibit long-run cointegration and the time-varying volatility of conventional bank deposit rates and PLS returns is correlated and is statistically significant. The pairwise and multivariate causality tests show that conventional bank deposit rates Granger cause returns on PLS accounts. These findings have policy implications in terms of price stability and financial stability
Table Of Contents
Cover; Contents; I. Introduction; Figures; 1. Conventional and Islamic One-Year Deposit Returns; II. Basic Principles and Instruments of Islamic Banking; III. Some Factual Observations; IV. Data; V. Econometric Methodology; VI. Interpreting the Empirical Results; Tables; 1. Unit Root Test Results; 2. Cointegration Test Results; 3. Granger Causality Test Results; 4. Malaysia: Vector Error Correction Estimates; 5. Turkey: Vector Error Correction Estimates; 6. VEC Granger Causality Test; 2. Malaysia: Response to Cholesky One S. D. Innovations
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (26 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781462330447

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