Islamic Banks

Does Inter-bank Investments Restraints Financing Performance of Islamic Banks?, the Law and other Social Sciences

The purpose of this study is to investigate the effect of Inter-bank Investment and changes in monetary policy on financing behaviour of Islamic banks in Malaysia. The change occurring in bank specifications and changes in monetary policy, will lead financial authorities generally, banking management specifically to make modifications on financing. In order to achieve the objective, this study employs panel data estimation of 17 Malaysian banks for the period of 1994-2014. Findings revealed that the pattern and behaviour of Islamic banking in offering financing is influenced by the investment in inter-bank investment and also by the factors such as level of past financing, the exposure to risk, size and structure of the capitalisation level. While for monetary policy factor, financing behaviour of Islamic banking is influenced by Malaysian government securities (MGS). Next to the economic environment, the study showed no significant relationship to the behaviour of the Malaysian Islamic banking financing.[1]

Resources

Notes and References

1. Mohammad Taqiuddin Mohamad, Munazza Saeed, “Does Inter-Bank Investments Restraints Financing Performance of Islamic Banks?” (Encyclopedia of Information Science and Technology, 4th Edition, Information Resources Management Association, 2018)