What’s in it for Me? A Primeron Differences between Islamic and Conventional Finance in Malaysia

June 1, 2012

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Olga Krasicka, and Sylwia Nowak. What’s in it for Me? A Primeron Differences between Islamic and Conventional Finance in Malaysia, (USA: International Monetary Fund, 2012) accessed December 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

What attracts conventional investors to Islamic financial instruments? We answer this question by comparing Malaysian Islamic and conventional security prices and their response to macrofinancial factors. Our analysis suggests that Islamic and conventional bond and equity prices are driven by common factors. Likewise, especially in recent years, Islamic banks have responded to economic and financial shocks in the same way as conventional banks, suggesting that the gap between Islamic and conventional financial practices is shrinking.

Subject: Banking, Bonds, Financial institutions, Financial services, Islamic banking, Islamic finance, Stocks

Keywords: Bank, Bank Islam Malaysia Berhard, Bond return equation, Bonds, Conventional banks, East Asia, Equity index, Global, Insurance corporation, Islamic banking, Islamic banks, Islamic finance, Malaysia, Market share, Return on equity, Securities commission Malaysia, Stocks, Sukuk, WP

Publication Details

Pages:

22
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2012/151
Stock No:

WPIEA2012151
ISBN:

9781475504224
ISSN:

1018-5941

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