The Mudharabah Deposit Rate Behaviour in Relation to the Conventional Deposit Rate (Gelagat Kadar Deposit Mudharabah Berhubung dengan Kadar Deposit Konvensional)

Radziah Abdul Latiff, Noreha Halid

Abstract


ABSTRACT

This study examines the relationship between the conventional and mudharabah deposit rates of Malaysian banks in two separate periods – between January 1996 and September 2004, and between October 2004 and June 2011 – which signify the implementation of a framework for calculating the Islamic bank deposit rate and the profit equalization reserve (PER). Employing the autoregressive distributed lagged (ARDL) approach, this study finds the two rates to be cointegrated in the first period similar to previous findings. However, for the second period, there is largely no evidence of a long-term relationship. The significance of this finding is that in the second period, when Islamic banks employ a regulated PER as a displacement risk mitigating mechanism, Islamic banks do not benchmark against conventional rates. They possibly engage in income smoothing for economic efficiency or for signalling purposes. An important policy implication is that PER and any type of reserve to smooth income, that is regulated, may be prescribed as it may have a positive behavioural effect.

ABSTRAK

Kajian ini mengkaji hubungan antara kadar deposit konvensional dan mudharabah untuk bank-bank Malaysia dalam dua tempoh berasingan – antara Januari 1996 dengan September 2004, dan antara Oktober 2004 dengan Jun 2011- yang menandakan perlaksanaan kerangka kerja bagi pengiraan kadar deposit bank Islam dan rizab persamaan keuntungan (PER). Dengan menggunakan pendekatan autoregresif lat teragih (ARDL), kajian ini mendapati kedua-dua kadar berkointegrasi dalam tempoh pertama seperti penemuan kajian lepas. Walau bagaimanapun dalam tempoh kedua, secara keseluruhan tiada bukti yang menunjukkan wujudnya hubungan jangka panjang. Kepentingan penemuan ini adalah dalam tempoh kedua di mana bank Islam menggunakan PER yang terkawal sebagai mekanisme pengurangan risiko anjakan, bank Islam tidak menggunakan kadar konvensional sebagai tanda aras. Berkemungkinan bank Islam melicinkan pendapatan atas dasar kecekapan ekonomi atau untuk tujuan memberi isyarat. Satu implikasi polisi yang penting adalah PER dan sebarang rizab untuk tujuan pelicinan pendapatan yang terkawal boleh disarankan kerana ia mungkin mempunyai kesan tingkah laku yang positif.


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