Integrasi Kadar Pulangan dan Kebolehgantian Deposit Perbankan Islam dengan Deposit Perbankan Konvensional

Banking system in Malaysia is unique in the sense that it exists in a few countries in the world whereby Islamic banking and conventional banking coexist in a single system. Differences in banking principles and practices render Islamic banking and conventional banking deposits not exactly similar. This study conducts Granger causality tests to analyze the relationship between rates of interest on deposits of conventional bank and rates of return on deposits of Islamic bank in Malaysia. This study also investigates degree of substitutions among various categories of deposits offered by Islamic and conventional banks. For this purpose a system of demand share for deposits, comprising of both saving and time deposits, is estimated using SUR. The study found that cointegrating relationship exists between the rates of interest and the rates of return for deposits of the same maturity. Although rates of interest are more likely to influence rates of return in the long run, their changes are not the only factor that explain short run changes in the rates of return on deposits of Islamic banking in Malaysia. The study also found that the demand for Islamic banking deposits is more elastic with respect to wealth compared to that of conventional banking. Islamic banking and conventional banking deposits of equal maturity are found to substitute each other, hence it can be concluded that the deposits of Islamic banking are not only complementing but also can substitute and serve as alternatives to deposits of the conventional banking.