Empirical determinants of saving in the Islamic banks: evidence from Indonesia

Empirical determinants of saving in the Islamic banks: evidence from Indonesia

This study attempts to determine the factors affecting saving in the Islamic banks in Indonesia. By employing the Vector Autoregressive and its associated Impulse Response Function analysis for all Islamic banks in Indonesia from March 2000 to August 2007, the study analyzes the importance of real r...

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Main Authors: Kasri, Rahmatina Awaliah, Kassim, Salina
Format: Article
Language:English
Published: King AbdulAziz University, Kingdom Of Saudi Arabia 2009
Subjects:
HG1501 Banking
Online Access:http://irep.iium.edu.my/1006/
http://irep.iium.edu.my/1006/
http://irep.iium.edu.my/1006/1/Empirical_determinants_of_saving_in_the_Islamic_banks-Evidence_from_Indonesia.pdf
id iium-1006
recordtype eprints
spelling iium-10062011-07-15T08:00:49Z http://irep.iium.edu.my/1006/ Empirical determinants of saving in the Islamic banks: evidence from Indonesia Kasri, Rahmatina Awaliah Kassim, Salina HG1501 Banking This study attempts to determine the factors affecting saving in the Islamic banks in Indonesia. By employing the Vector Autoregressive and its associated Impulse Response Function analysis for all Islamic banks in Indonesia from March 2000 to August 2007, the study analyzes the importance of real rate of return on Islamic deposit, interest rate on conventional deposit, real income and number of Islamic bank branches in determining the level of savings in the Islamic banks. The results highlight the influential role of conventional interest rate in determining the level of saving in the Islamic banks. In particular, higher Islamic deposit is significantly correlated with higher rate of return and lower interest rate. Furthermore, the study finds the existence of displaced commercial risk between the Islamic and conventional banks, such that the Islamic banks’ depositors transfer their funds to the conventional banks when the rate of return provided by the Islamic banks is significantly lower that the interest rate of its counterpart. The findings of this study have important implication on the risk management practices in the Islamic banks in Indonesia. King AbdulAziz University, Kingdom Of Saudi Arabia 2009 Article PeerReviewed application/pdf en http://irep.iium.edu.my/1006/1/Empirical_determinants_of_saving_in_the_Islamic_banks-Evidence_from_Indonesia.pdf Kasri, Rahmatina Awaliah and Kassim, Salina (2009) Empirical determinants of saving in the Islamic banks: evidence from Indonesia. The Journal of King Abdulaziz University(JKAU): Islamic Economics, 22 (2). pp. 181-201. http://www.kau.edu.sa/Files/320/Researches/57075_27348.pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Kasri, Rahmatina Awaliah
Kassim, Salina
Empirical determinants of saving in the Islamic banks: evidence from Indonesia
description This study attempts to determine the factors affecting saving in the Islamic banks in Indonesia. By employing the Vector Autoregressive and its associated Impulse Response Function analysis for all Islamic banks in Indonesia from March 2000 to August 2007, the study analyzes the importance of real rate of return on Islamic deposit, interest rate on conventional deposit, real income and number of Islamic bank branches in determining the level of savings in the Islamic banks. The results highlight the influential role of conventional interest rate in determining the level of saving in the Islamic banks. In particular, higher Islamic deposit is significantly correlated with higher rate of return and lower interest rate. Furthermore, the study finds the existence of displaced commercial risk between the Islamic and conventional banks, such that the Islamic banks’ depositors transfer their funds to the conventional banks when the rate of return provided by the Islamic banks is significantly lower that the interest rate of its counterpart. The findings of this study have important implication on the risk management practices in the Islamic banks in Indonesia.
format Article
author Kasri, Rahmatina Awaliah
Kassim, Salina
author_facet Kasri, Rahmatina Awaliah
Kassim, Salina
author_sort Kasri, Rahmatina Awaliah
title Empirical determinants of saving in the Islamic banks: evidence from Indonesia
title_short Empirical determinants of saving in the Islamic banks: evidence from Indonesia
title_full Empirical determinants of saving in the Islamic banks: evidence from Indonesia
title_fullStr Empirical determinants of saving in the Islamic banks: evidence from Indonesia
title_full_unstemmed Empirical determinants of saving in the Islamic banks: evidence from Indonesia
title_sort empirical determinants of saving in the islamic banks: evidence from indonesia
publisher King AbdulAziz University, Kingdom Of Saudi Arabia
publishDate 2009
url http://irep.iium.edu.my/1006/
http://irep.iium.edu.my/1006/
http://irep.iium.edu.my/1006/1/Empirical_determinants_of_saving_in_the_Islamic_banks-Evidence_from_Indonesia.pdf
first_indexed 2023-09-18T20:08:05Z
last_indexed 2023-09-18T20:08:05Z
_version_ 1777407293163307008

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