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Does Islamic interbank rate influence bank characteristics and economic cycle in Malaysian monetary transmission?

This study aims to determine the effectiveness of Islamic Interbank Rate as the intermediary target by monetary policymakers in achieving economic goals. Via Islamic banking institutions as the mediator to channel the policy effect, the relevancy of this tool is identifiable. To attain this objectiv...

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Main Authors: Muhammad, F., Sulaiman, A.A., Hussien, M.Y.M., Razak, A.A.
Format: Article
Language:English
Published: Macrothink Institute 2012
Subjects:
Islam
HG Finance
Online Access:http://eprints.um.edu.my/9617/1/00009719_91033.pdf
http://eprints.um.edu.my/9617/
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spelling my.um.eprints.96172014-04-17T03:36:44Z http://eprints.um.edu.my/9617/ Does Islamic interbank rate influence bank characteristics and economic cycle in Malaysian monetary transmission? Muhammad, F. Sulaiman, A.A. Hussien, M.Y.M. Razak, A.A. Islam HG Finance This study aims to determine the effectiveness of Islamic Interbank Rate as the intermediary target by monetary policymakers in achieving economic goals. Via Islamic banking institutions as the mediator to channel the policy effect, the relevancy of this tool is identifiable. To attain this objective, a credit channel model was used by adapting macroeconomic variables and also bank specific variables. Data from 1997 until 2010 was regressed by using the Panel Data method with the application of interaction approach. The analysis finding shows that the IIR is capable in influencing the bank specific variables. Accordingly, Islamic banks are the significant intermediaries in ensuring the effect of policy implementation provides stimulation to the achievement of the desired economic goals. Besides, the significant pro cyclical nature through the interaction with the GDP, indicatesthe effect of this policy tool in influencing bank behavior to offer financing for the economic sectors parallel to the current economy. Macrothink Institute 2012 Article PeerReviewed application/pdf en http://eprints.um.edu.my/9617/1/00009719_91033.pdf Muhammad, F. and Sulaiman, A.A. and Hussien, M.Y.M. and Razak, A.A. (2012) Does Islamic interbank rate influence bank characteristics and economic cycle in Malaysian monetary transmission? Asian Journal of Finance & Accounting, 4 (2). pp. 131-143. ISSN 1946-052X doi:10.5296/ajfa.v4i2.1813
institution Universiti Malaya
building UM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaya
content_source UM Research Repository
url_provider http://eprints.um.edu.my/
language English
topic Islam
HG Finance
spellingShingle Islam
HG Finance
Muhammad, F.
Sulaiman, A.A.
Hussien, M.Y.M.
Razak, A.A.
Does Islamic interbank rate influence bank characteristics and economic cycle in Malaysian monetary transmission?
description This study aims to determine the effectiveness of Islamic Interbank Rate as the intermediary target by monetary policymakers in achieving economic goals. Via Islamic banking institutions as the mediator to channel the policy effect, the relevancy of this tool is identifiable. To attain this objective, a credit channel model was used by adapting macroeconomic variables and also bank specific variables. Data from 1997 until 2010 was regressed by using the Panel Data method with the application of interaction approach. The analysis finding shows that the IIR is capable in influencing the bank specific variables. Accordingly, Islamic banks are the significant intermediaries in ensuring the effect of policy implementation provides stimulation to the achievement of the desired economic goals. Besides, the significant pro cyclical nature through the interaction with the GDP, indicatesthe effect of this policy tool in influencing bank behavior to offer financing for the economic sectors parallel to the current economy.
format Article
author Muhammad, F.
Sulaiman, A.A.
Hussien, M.Y.M.
Razak, A.A.
author_facet Muhammad, F.
Sulaiman, A.A.
Hussien, M.Y.M.
Razak, A.A.
author_sort Muhammad, F.
title Does Islamic interbank rate influence bank characteristics and economic cycle in Malaysian monetary transmission?
title_short Does Islamic interbank rate influence bank characteristics and economic cycle in Malaysian monetary transmission?
title_full Does Islamic interbank rate influence bank characteristics and economic cycle in Malaysian monetary transmission?
title_fullStr Does Islamic interbank rate influence bank characteristics and economic cycle in Malaysian monetary transmission?
title_full_unstemmed Does Islamic interbank rate influence bank characteristics and economic cycle in Malaysian monetary transmission?
title_sort does islamic interbank rate influence bank characteristics and economic cycle in malaysian monetary transmission?
publisher Macrothink Institute
publishDate 2012
url http://eprints.um.edu.my/9617/1/00009719_91033.pdf
http://eprints.um.edu.my/9617/
_version_ 1643688610677915648
score 13.211869

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