Che Arshad, Noraziah and Nurfadilah, Dety (2017) The factors influencing the changes of deposit in Islamic bank: comparative study between Malaysia And Indonesia. Journal of Islamic Banking and Finance, 5 (2). pp. 37-46. ISSN 23742666

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Abstract

This paper aims to investigate the factors influencing the changes of deposit in Islamic banks in the case of a comparative study between Malaysia and Indonesia. The focus of this paper is on the mudharabah deposits. For that purpose, a model is set up to estimate the changes of Islamic deposit. In line with this issue, we find that four variables are being considered: Non performing financing, reserve, rate of return, and interest rate. The data were collected from 16 Islamic Banks in Malaysia and 11 Islamic Banks in Indonesia during the period 2010 – 2015. This study used panel data and generalised least square method. The findings show that conventional interest rates and non-performing financing for both countries have a negative relationship with the changes of Mudharabah deposits, while rate of return and bank reserve have a positive relationship and significant with the changes of Mudharabah deposits. To the best of the author’s knowledge, this is the first attempt to empirically examine the differentiation of customer bank’s behaviour towards Islamic deposit product in Malaysia and Indonesia.

Item Type:	Article
Uncontrolled Keywords:	Islamic deposit, non-performing financing, rate of return, interest rate, Mudharabah deposits.
Subjects:	H Social Sciences > HG Finance
Divisions:	Islamic Business School
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	25 Jul 2019 03:09
Last Modified:	25 Jul 2019 03:09
URI:	https://repo.uum.edu.my/id/eprint/26259

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