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Transmission Mechanism of Sharia Financing in Malaysia

A country that adopts dual banking system provides options to their customers to choose their modes of financing. When interest rate increases, sharia financing instrument might become an option to the conventional method. Sharia financing to the real sector could create equilibrium condition bet...

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Main Authors: Yulizar D. Sanrego, Khulailatun Nikmawati
Format: Article
Language:English
Published: Universiti Sains Islam Malaysia 2012
Subjects:
Transmission Mechanism
Sharia Financing
VECM
Online Access:http://ddms.usim.edu.my/handle/123456789/5387
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spelling my.usim-53872015-03-02T06:39:16Z Transmission Mechanism of Sharia Financing in Malaysia Yulizar D. Sanrego Khulailatun Nikmawati Transmission Mechanism Sharia Financing VECM A country that adopts dual banking system provides options to their customers to choose their modes of financing. When interest rate increases, sharia financing instrument might become an option to the conventional method. Sharia financing to the real sector could create equilibrium condition between monetary and real sector. This study aims to show the transmission sharia channel (sharia financing) with vector error correction model (VECM) approach. The result of impulse response - . function shows that sharia financing reduces negative effect of interest rate to inflation after sixth months. However sharia financing is unable to substitute conventional credit, when interest rate increases. 2012-03-12T05:42:49Z 2012-03-12T05:42:49Z 2010 Article 1823075X http://ddms.usim.edu.my/handle/123456789/5387 en vol.7 no.1 2010; Universiti Sains Islam Malaysia
institution Universiti Sains Islam Malaysia
building USIM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universit Sains Islam i Malaysia
content_source USIM Institutional Repository
url_provider http://ddms.usim.edu.my/
language English
topic Transmission Mechanism
Sharia Financing
VECM
spellingShingle Transmission Mechanism
Sharia Financing
VECM
Yulizar D. Sanrego
Khulailatun Nikmawati
Transmission Mechanism of Sharia Financing in Malaysia
description A country that adopts dual banking system provides options to their customers to choose their modes of financing. When interest rate increases, sharia financing instrument might become an option to the conventional method. Sharia financing to the real sector could create equilibrium condition between monetary and real sector. This study aims to show the transmission sharia channel (sharia financing) with vector error correction model (VECM) approach. The result of impulse response - . function shows that sharia financing reduces negative effect of interest rate to inflation after sixth months. However sharia financing is unable to substitute conventional credit, when interest rate increases.
format Article
author Yulizar D. Sanrego
Khulailatun Nikmawati
author_facet Yulizar D. Sanrego
Khulailatun Nikmawati
author_sort Yulizar D. Sanrego
title Transmission Mechanism of Sharia Financing in Malaysia
title_short Transmission Mechanism of Sharia Financing in Malaysia
title_full Transmission Mechanism of Sharia Financing in Malaysia
title_fullStr Transmission Mechanism of Sharia Financing in Malaysia
title_full_unstemmed Transmission Mechanism of Sharia Financing in Malaysia
title_sort transmission mechanism of sharia financing in malaysia
publisher Universiti Sains Islam Malaysia
publishDate 2012
url http://ddms.usim.edu.my/handle/123456789/5387
_version_ 1645151660438192128
score 13.222552

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