{"id":1957,"date":"2021-06-03T06:45:52","date_gmt":"2021-06-02T22:45:52","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&p=1957"},"modified":"2021-09-09T12:31:53","modified_gmt":"2021-09-09T04:31:53","slug":"interest-rate-and-loan-supply-islamic-versus-conventional-banking-system","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/interest-rate-and-loan-supply-islamic-versus-conventional-banking-system\/","title":{"rendered":"Interest Rate and Loan Supply: Islamic Versus Conventional Banking System"},"content":{"rendered":"

This paper attempts to explore the effect of interest rate on loan supply of Islamic banking alld Convemional banking system. The analysis segregated the Islamic and Conventional banking system into commercial bank, finance company and merchant bank. Overnight and 3 month Klibor are used as interest proxy. Unit root test, Granger Causality test, Akaike Information Criterion and Regression analysist are used in the study. The results of Granger Causality test indicate that the growth of overnight Klibor causes changes in the growth of Islamic and Conventional loan of Merchant Banks significantly and from the regression analysis, it is confirm that Islamic and Conventional loan growth of merchant bank are significantly positive related to overnight Klibor.<\/p>\n","protected":false},"template":"","tags":[],"jel-code":[],"article-type":[1329],"class_list":["entry","author-jem","post-1957","article","type-article","status-publish","article-type-normal-article"],"yoast_head":"\nInterest Rate and Loan Supply: Islamic Versus Conventional Banking System | Jurnal Ekonomi Malaysia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ukm.my\/jem\/article\/interest-rate-and-loan-supply-islamic-versus-conventional-banking-system\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Interest Rate and Loan Supply: Islamic Versus Conventional Banking System | Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"og:description\" content=\"This paper attempts to explore the effect of interest rate on loan supply of Islamic banking alld Convemional banking system. The analysis segregated the Islamic and Conventional banking system into commercial bank, finance company and merchant bank. Overnight and 3 month Klibor are used as interest proxy. Unit root test,Continue Reading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ukm.my\/jem\/article\/interest-rate-and-loan-supply-islamic-versus-conventional-banking-system\/\" \/>\n<meta property=\"og:site_name\" content=\"Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\" \/>\n<meta property=\"article:modified_time\" content=\"2021-09-09T04:31:53+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@EkonomiJurnal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/interest-rate-and-loan-supply-islamic-versus-conventional-banking-system\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/interest-rate-and-loan-supply-islamic-versus-conventional-banking-system\\\/\",\"name\":\"Interest Rate and Loan Supply: Islamic Versus Conventional Banking System | Jurnal Ekonomi Malaysia\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\"},\"datePublished\":\"2021-06-02T22:45:52+00:00\",\"dateModified\":\"2021-09-09T04:31:53+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/interest-rate-and-loan-supply-islamic-versus-conventional-banking-system\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/interest-rate-and-loan-supply-islamic-versus-conventional-banking-system\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/interest-rate-and-loan-supply-islamic-versus-conventional-banking-system\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Interest Rate and Loan Supply: Islamic Versus Conventional Banking System\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"name\":\"Jurnal Ekonomi Malaysia\",\"description\":\"Universiti Kebangsaan Malaysia\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\",\"name\":\"Jurnal Ekonomi Malaysia\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"contentUrl\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"width\":512,\"height\":308,\"caption\":\"Jurnal Ekonomi Malaysia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\",\"https:\\\/\\\/x.com\\\/EkonomiJurnal\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Interest Rate and Loan Supply: Islamic Versus Conventional Banking System | Jurnal Ekonomi Malaysia","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ukm.my\/jem\/article\/interest-rate-and-loan-supply-islamic-versus-conventional-banking-system\/","og_locale":"en_US","og_type":"article","og_title":"Interest Rate and Loan Supply: Islamic Versus Conventional Banking System | Jurnal Ekonomi Malaysia","og_description":"This paper attempts to explore the effect of interest rate on loan supply of Islamic banking alld Convemional banking system. 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