The bank lending channel of monetary policy transmission in a dual banking system
This paper examines the impact of monetary policy on bank lending in a dual banking system, i.e. Malaysia. Making use of an unbalanced panel data set of 38 Islamic and conventional banks covering mostly 2001-2014, we find evidence that variations in monetary policy affect lending growth of Islamic banks and, to some extent, conventional banks. The results further reveal that, in comformity with studies using aggregate Islamic financing data, the Islamic financing growth reacts more strongly to monetary policy changes.
Bank lending channel , Monetary policy , Dual banking system , Malaysia
Ibrahim, M. H. (2017). The bank lending channel of monetary policy transmission in a dual banking system. Journal of Islamic Monetary Economics and Finance, 2(2), pp. 193-220.
Islamic Economic and Finance department, Bank Indonesia