Monetary policy transmission through the bank-financing channel in Malaysia: Evidence from bank-level data
This study analyses the role of Islamic banks in transmitting monetary policy through the bank-financing channel in Malaysia. Bank size, liquidity and capitalization levels are hypothesized to be sources of cross-sectional differences among banks. If relevant, this implies that the financing channel...
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| Format: | Article |
| Language: | English English |
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Statistical Economic and Social Research and Training Centre for Islamic Countries
2014
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| Online Access: | http://irep.iium.edu.my/58467/ http://irep.iium.edu.my/58467/1/58467_Monetary%20policy%20transmission_article_new.pdf http://irep.iium.edu.my/58467/2/58467_Monetary%20policy%20transmission_scopus.pdf |
| _version_ | 1848785119112855552 |
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| author | Asbeig, Hussam I. Kassim, Salina |
| author_facet | Asbeig, Hussam I. Kassim, Salina |
| author_sort | Asbeig, Hussam I. |
| building | IIUM Repository |
| collection | Online Access |
| description | This study analyses the role of Islamic banks in transmitting monetary policy through the bank-financing channel in Malaysia. Bank size, liquidity and capitalization levels are hypothesized to be sources of cross-sectional differences among banks. If relevant, this implies that the financing channel is operational through the Islamic banks. We evaluate a sample period from 2000 to 2011, using panel data with robust standard errors, to investigate the heterogeneity of the financing supply in response to monetary policy shocks. The results show no significant differences across banks, based on size, capitalization and liquidity levels, and thus do not support the presence of a bank-financing channel in Malaysia. The study contributes a deeper understanding of the role of Islamic banks in the monetary policy transmission mechanism in Malaysia |
| first_indexed | 2025-11-14T16:48:04Z |
| format | Article |
| id | iium-58467 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T16:48:04Z |
| publishDate | 2014 |
| publisher | Statistical Economic and Social Research and Training Centre for Islamic Countries |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-584672017-09-21T08:51:56Z http://irep.iium.edu.my/58467/ Monetary policy transmission through the bank-financing channel in Malaysia: Evidence from bank-level data Asbeig, Hussam I. Kassim, Salina HB Economic Theory HC Economic History and Conditions This study analyses the role of Islamic banks in transmitting monetary policy through the bank-financing channel in Malaysia. Bank size, liquidity and capitalization levels are hypothesized to be sources of cross-sectional differences among banks. If relevant, this implies that the financing channel is operational through the Islamic banks. We evaluate a sample period from 2000 to 2011, using panel data with robust standard errors, to investigate the heterogeneity of the financing supply in response to monetary policy shocks. The results show no significant differences across banks, based on size, capitalization and liquidity levels, and thus do not support the presence of a bank-financing channel in Malaysia. The study contributes a deeper understanding of the role of Islamic banks in the monetary policy transmission mechanism in Malaysia Statistical Economic and Social Research and Training Centre for Islamic Countries 2014 Article PeerReviewed application/pdf en http://irep.iium.edu.my/58467/1/58467_Monetary%20policy%20transmission_article_new.pdf application/pdf en http://irep.iium.edu.my/58467/2/58467_Monetary%20policy%20transmission_scopus.pdf Asbeig, Hussam I. and Kassim, Salina (2014) Monetary policy transmission through the bank-financing channel in Malaysia: Evidence from bank-level data. Journal of Economic Cooperation and Development, 35 (2). pp. 121-136. ISSN 1308-7800 http://www.sesric.org/pdf.php?file=ART13090101-2.pdf |
| spellingShingle | HB Economic Theory HC Economic History and Conditions Asbeig, Hussam I. Kassim, Salina Monetary policy transmission through the bank-financing channel in Malaysia: Evidence from bank-level data |
| title | Monetary policy transmission through the bank-financing channel in Malaysia: Evidence from bank-level data |
| title_full | Monetary policy transmission through the bank-financing channel in Malaysia: Evidence from bank-level data |
| title_fullStr | Monetary policy transmission through the bank-financing channel in Malaysia: Evidence from bank-level data |
| title_full_unstemmed | Monetary policy transmission through the bank-financing channel in Malaysia: Evidence from bank-level data |
| title_short | Monetary policy transmission through the bank-financing channel in Malaysia: Evidence from bank-level data |
| title_sort | monetary policy transmission through the bank-financing channel in malaysia: evidence from bank-level data |
| topic | HB Economic Theory HC Economic History and Conditions |
| url | http://irep.iium.edu.my/58467/ http://irep.iium.edu.my/58467/ http://irep.iium.edu.my/58467/1/58467_Monetary%20policy%20transmission_article_new.pdf http://irep.iium.edu.my/58467/2/58467_Monetary%20policy%20transmission_scopus.pdf |