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Jurnal Ekonomi Malaysia

28 1994 57 – 68

Profit-Sharing in a Model of Bank Behaviour

Jabatan Analisis Ekonomi dan Dasar Awam
Fakulti Ekonomi
Universiti Kebangsaan Malaysia
43600 uru Bangi, Selangor D.E


Abstract

The establishment of Islamic banks has brought forward three basic issues. First, there are questions concerning the operation of a banking system which is prohibited from paying and receiving interest rates. Second, there are issues arising from the coexistence of Islamic banks with conventional banks. Third, there is the question of how monetary policy can be expected to operate in an interest-free banking system. These issues have been integrated into a model of bank behaviour which incorporates outputs, inputs, profit-sharing and monetary policy. The results shows competitive interactions between assets and liabilities, and between Islamic banks and conventional banks, so the impact of profit-sharing can be explicitly and directly abassessed.

Author’s Acknowledgement

The author gives special thanks to Peter Smith, George McKenzie,
Robin Wells, Victor Hung, Roland Craigwell and Yosif Basodan
for helpful comments and suggestions. Financial support from the
Universiti Kebangsaan Malaysia under grant PcB/93 is fully
appreciated.

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ismail, (1994). Profit-Sharing in a Model of Bank Behaviour. Jurnal Ekonomi Malaysia, 28, 57–68.

@article{ismail1994profit,
  title={Profit-Sharing in a Model of Bank Behaviour},
  author={ismail, abdul},
  journal={Jurnal Ekonomi Malaysia},
  volume={28},
  number={},
  pages={57—68},
 

year={1994},
}

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