Interest Rate and Loan Supply: Islamic Versus Conventional Banking System

Liza Yusoff, Aisyah Rahman and Norazlan Alias
Additional contact information
Liza Yusoff: Fakulti Pengurusan Pemiagaan Universiti Kebangsaan Malaysia 43600 UKM Bangi Selangor Darul Ehsan
Aisyah Rahman: Fakulti Pengurusan Pemiagaan Universiti Kebangsaan Malaysia 43600 UKM Bangi Selangor Darul Ehsan
Norazlan Alias: Fakulti Pengurusan Pemiagaan Universiti Kebangsaan Malaysia 43600 UKM Bangi Selangor Darul Ehsan

Jurnal Ekonomi Malaysia, 2001, vol. 35, 61-68

Abstract: This paper attempts to explore the effect of interest rate on loan supply of Islamic banking alld Convemional banking system. The analysis segregated the Islamic and Conventional banking system into commercial bank, finance company and merchant bank. Overnight and 3 month Klibor are used as interest proxy. Unit root test, Granger Causality test, Akaike Information Criterion and Regression analysist are used in the study. The results of Granger Causality test indicate that the growth of overnight Klibor causes changes in the growth of Islamic and Conventional loan of Merchant Banks significantly and from the regression analysis, it is confirm that Islamic and Conventional loan growth of merchant bank are significantly positive related to overnight Klibor.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ukm.my/jem/wp-content/uploads/2021/06/jeko_35-4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:35:y:2001:i::p:61-68

Access Statistics for this article

More articles in Jurnal Ekonomi Malaysia from Faculty of Economics and Business, Universiti Kebangsaan Malaysia Contact information at EDIRC.
Bibliographic data for series maintained by Muhammad Asri Abd Ghani ().