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ALTERNATIVE OF MONETARY POLICY INDICATOR: PANEL DATA ANALYSIS FROM ISLAMIC BANKS IN MALAYSIA

Journal of Islamic Monetary Economics and Finance

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Title ALTERNATIVE OF MONETARY POLICY INDICATOR: PANEL DATA ANALYSIS FROM ISLAMIC BANKS IN MALAYSIA
 
Creator Ahmad, Zuriyati
Ismail, Abdul Ghafar
 
Description The monetary policy indicators such as monetary aggregates, interest rates andMonetary Condition Index (MCI) are the traditional monetary policy indicatorsused in order to obtain early indication of the impact of monetary policy. Theseindicators could function as appropriate monetary policy indicators that will provideinformation to the monetary policy makers. The development in Islamic financialsystem however creates a challenge to find a monetary policy indicator, which is inconformity with Islamic teaching. Therefore, this paper is aimed to examine the futuregrowth of nominal GDP as an alternative variable for monetary policy indicator inIslamic monetary system. The investigation will benefit from data of 17 Islamic banksin Malaysia which implement full fledge or Islamic windows scheme spanning from2005 to 2010. GMM system method is used to analyze the data in hope to validatethe appropriateness of the alternative monetary policy indicator. The result suggeststhat the future growth of nominal GDP is significant as monetary policy indicator andcould be applied by the central bank in implementing the monetary policy especiallyin the dual banking system.Keywords: Monetary Policy; Monetary Policy Indicators; Bank Financing.JEL Classification: E52; E58; C33; G21.
 
Publisher Bank Indonesia
 
Date 2019-02-09
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://jimf-bi.org/index.php/JIMF/article/view/1017
10.21098/jimf.v4i2.1017
 
Source Journal of Islamic Monetary Economics and Finance; Vol 4 No 2 (2018): NOVEMBER; 279-292
2460-6618
2460-6146
 
Language eng
 
Relation http://jimf-bi.org/index.php/JIMF/article/view/1017/733
 
Rights Copyright (c) 2018 Zuriyati Ahmad, Abdul Ghafar Ismail