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Are deposit and investment accounts in Islamic banks in Malaysia interest-free?

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dc.contributor.authorMohd Rasid, Mohamed Eskandar Shah
dc.contributor.authorShamsher Mohamad Ramadili Mohd
dc.date.accessioned2016-08-01T10:33:50Z
dc.date.available2016-08-01T10:33:50Z
dc.date.disclosure2016-07-22
dc.date.issued2014
dc.description.abstractIslamic banking and Finance (IBF) provides products and services guided by the Shariah. Therefore, they are supposed to be different from their conventional counterparts. Islamic deposit rates should be different from conventional deposit rates. Islamic banking profit rates are supposedly less risky due to risksharing attribute embedded in their structure as compared to the conventional banking interest rates on similar-risk investment products. This paper addresses this concern by examining the differences in the monthly fixed deposit rates of conventional and investment deposit rates of Islamic banks and finance companies in Malaysia for the period from January 1994 to December 2012 and determines the causality relationship between profit rates and interest rates on these investments. The findings suggest that profit rates of Islamic banks are significantly linked with interest rates of conventional banks.
dc.identifier.citationRamadili Mohd, Shamsher Mohamad and Mohd Rasid, Mohamed Eskandar Shah. (2014). Are deposit and investment accounts in Islamic banks in Malaysia interest free? Journal of King Abdulaziz University: Islamic Economics, 27 (2), pp: 27-55.
dc.identifier.doidoi:10.4197
dc.identifier.urihttps://ikr.inceif.org/handle/INCEIF/1763
dc.languageEnglish
dc.language.isoeng
dc.publisherKing Abdulaziz University
dc.rights2014. King Abdulaziz University
dc.sourceCRP
dc.subjectIslamic finance
dc.subjectConventional rates of return compared to Islamic profit rates
dc.subjectIslamic finance companies
dc.subjectShariah compliance of Islamic banks and finance companies
dc.titleAre deposit and investment accounts in Islamic banks in Malaysia interest-free?
dc.typeJournal Article
dlc.maintopicIslamic banking
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicIslamic banking
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relation.isAuthorOfPublication.latestForDiscovery33b91dde-0170-454c-8f2b-ec4b208837b9
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