Investigating the major determinants of islamic bank savings: Malaysian evidence

Aini, Sarah and Masih, Mansur (2018): Investigating the major determinants of islamic bank savings: Malaysian evidence.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Islamic bank savings and deposits, determinants, VECM, VDC, Malaysia
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C58 - Financial Econometrics; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy

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