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

Author/Editor: Olga Krasicka ; Sylwia Nowak
Publication Date: June 01, 2012
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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.
Series: Working Paper No. 12/151
Subject(s): Banking sector | Bonds | Commercial banks | Financial instruments | Islamic banking | Malaysia

Author's Keyword(s): Islamic banks | conventional banks | Sukuk | Malaysia
Publication Date: June 01, 2012
ISBN/ISSN: 9781475504224/1018-5941 Format: Paper
Stock No: WPIEA2012151 Pages: 22
US$18.00 (Academic Rate:
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