{"id":3451,"date":"2021-06-12T12:31:44","date_gmt":"2021-06-12T04:31:44","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/article\/determinants-of-islamic-bank-financing-in-malaysia-an-empirical-study-using-linear-and-nonlinear-ardl-model\/"},"modified":"2021-09-09T12:30:37","modified_gmt":"2021-09-09T04:30:37","slug":"determinants-of-islamic-bank-financing-in-malaysia-an-empirical-study-using-linear-and-nonlinear-ardl-model","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/determinants-of-islamic-bank-financing-in-malaysia-an-empirical-study-using-linear-and-nonlinear-ardl-model\/","title":{"rendered":"Determinants of Islamic Bank Financing in Malaysia: An Empirical Study using Linear and Nonlinear ARDL Model"},"content":{"rendered":"

This paper examines the dynamic relationship between the Islamic bank financing and selected macroeconomic variables in Malaysia using monthly data covering the period of January 2007 to June 2016. Utilizing both linear and non-linear ARDL method, the results show that there is no long-run relationship among the variables. The results also show no indication of both long-run and short-run asymmetric effects from industrial production index and rate of financing towards Islamic bank financing. In addition, Granger-causality test also indicates no causality running from these factors to Islamic bank financing. Therefore, we conclude that to some extent the Islamic bank financing is stable and resilient. Muslims customers continue to support the Islamic banking and are not profit-motivated by the substitution effect as Malaysia has dual banking system. The banking system which is based on profit sharing is able to cushion the Islamic financial system from interest rate and economic fluctuation thus reducing the risk of financial volatility.<\/p>\n","protected":false},"template":"","tags":[855,1192,1193],"jel-code":[],"article-type":[1329],"class_list":["entry","author-jem","post-3451","article","type-article","status-publish","tag-asymmetric-cointegration","tag-islamic-bank-financing","tag-nonlinear-ardl-nardl","article-type-normal-article"],"yoast_head":"\nDeterminants of Islamic Bank Financing in Malaysia: An Empirical Study using Linear and Nonlinear ARDL Model | 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\/determinants-of-islamic-bank-financing-in-malaysia-an-empirical-study-using-linear-and-nonlinear-ardl-model\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Determinants of Islamic Bank Financing in Malaysia: An Empirical Study using Linear and Nonlinear ARDL Model | Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"og:description\" content=\"This paper examines the dynamic relationship between the Islamic bank financing and selected macroeconomic variables in Malaysia using monthly data covering the period of January 2007 to June 2016. Utilizing both linear and non-linear ARDL method, the results show that there is no long-run relationship among the variables. 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