Religiosity versus rationality: depositor behavior in Islamic and conventional banks
This study investigates the behavioral aspects of Islamic bank depositors in a dual banking system. By categorizing depositors into groups based on the amount of their deposited funds, we estimate the responses of these groups to interest rate changes. We take the findings of conventional banks as a...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2018
|
| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/43409/ |
| _version_ | 1848796681258139648 |
|---|---|
| author | Aysan, Ahmet F. Disli, Mustafa Duygun, Meryem Ozturk, Huseyin |
| author_facet | Aysan, Ahmet F. Disli, Mustafa Duygun, Meryem Ozturk, Huseyin |
| author_sort | Aysan, Ahmet F. |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This study investigates the behavioral aspects of Islamic bank depositors in a dual banking system. By categorizing depositors into groups based on the amount of their deposited funds, we estimate the responses of these groups to interest rate changes. We take the findings of conventional banks as a comparative baseline and investigate the extent to which the changes in different Islamic depositor groups differ from conventional depositor groups. The findings show that depositors in both Islamic and conventional banks respond to interest rate changes. The analysis indicates that Islamic bank depositors are more responsive when their deposit sizes are larger. When Islamic bank depositors' opportunity costs rise due to a rise in the interest rate, they do not hesitate to withdraw deposits. The relation between interest rate changes and deposits is more robust in Islamic banks than in conventional banks. |
| first_indexed | 2025-11-14T19:51:51Z |
| format | Article |
| id | nottingham-43409 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:51:51Z |
| publishDate | 2018 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-434092019-03-09T04:30:11Z https://eprints.nottingham.ac.uk/43409/ Religiosity versus rationality: depositor behavior in Islamic and conventional banks Aysan, Ahmet F. Disli, Mustafa Duygun, Meryem Ozturk, Huseyin This study investigates the behavioral aspects of Islamic bank depositors in a dual banking system. By categorizing depositors into groups based on the amount of their deposited funds, we estimate the responses of these groups to interest rate changes. We take the findings of conventional banks as a comparative baseline and investigate the extent to which the changes in different Islamic depositor groups differ from conventional depositor groups. The findings show that depositors in both Islamic and conventional banks respond to interest rate changes. The analysis indicates that Islamic bank depositors are more responsive when their deposit sizes are larger. When Islamic bank depositors' opportunity costs rise due to a rise in the interest rate, they do not hesitate to withdraw deposits. The relation between interest rate changes and deposits is more robust in Islamic banks than in conventional banks. Elsevier 2018-03-01 Article PeerReviewed application/pdf en cc_by_nc_nd https://eprints.nottingham.ac.uk/43409/1/Religiosity%20versus%20Rationality%20Depositor%20Behavior%20in.pdf Aysan, Ahmet F., Disli, Mustafa, Duygun, Meryem and Ozturk, Huseyin (2018) Religiosity versus rationality: depositor behavior in Islamic and conventional banks. Journal of Comparative Economics, 46 (1). pp. 1-19. ISSN 0147-5967 Dual banking; Islamic banking; Captivity; Risk aversion http://www.sciencedirect.com/science/article/pii/S0147596717300240 doi:10.1016/j.jce.2017.03.001 doi:10.1016/j.jce.2017.03.001 |
| spellingShingle | Dual banking; Islamic banking; Captivity; Risk aversion Aysan, Ahmet F. Disli, Mustafa Duygun, Meryem Ozturk, Huseyin Religiosity versus rationality: depositor behavior in Islamic and conventional banks |
| title | Religiosity versus rationality: depositor behavior in Islamic and conventional banks |
| title_full | Religiosity versus rationality: depositor behavior in Islamic and conventional banks |
| title_fullStr | Religiosity versus rationality: depositor behavior in Islamic and conventional banks |
| title_full_unstemmed | Religiosity versus rationality: depositor behavior in Islamic and conventional banks |
| title_short | Religiosity versus rationality: depositor behavior in Islamic and conventional banks |
| title_sort | religiosity versus rationality: depositor behavior in islamic and conventional banks |
| topic | Dual banking; Islamic banking; Captivity; Risk aversion |
| url | https://eprints.nottingham.ac.uk/43409/ https://eprints.nottingham.ac.uk/43409/ https://eprints.nottingham.ac.uk/43409/ |