IMPACT OF NON-INTERMEDIATION ACTIVITIES OF BANKS ON ECONOMIC GROWTH AND VOLATILITY: AN EVIDENCE FROM OIC

Mohsin Ali, Mansor Ibrahim and Mohamed Shah
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Mohsin Ali: School of Accounting and Finance, Faculty of Business and Law, Taylor’s University, Malaysia

The Singapore Economic Review (SER), 2022, vol. 67, issue 01, 333-348

Abstract: This paper investigates the impact of non-intermediation activities of banks on economic growth and volatility of OIC. For the purpose, we utilize LSDVC estimation approach using the sample of Organization of Islamic Countries (OIC) member countries for the period of 2001–2013. We find non-intermediation income to be insignificant for both economic growth and volatility of OIC member countries in general though it reduces volatility of Gulf Cooperation Council (GCC) economies. Intermediation activities are found to be insignificantly related with the growth of OIC member countries, but on the other hand, they are found to reduce volatility in OIC member countries. Our results are robust across different specifications and estimators.

Keywords: Non-interest/financing income (non-intermediation income); economic growth; economic volatility; OIC member countries (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (15)

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DOI: 10.1142/S0217590820420023

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