A study on determinants of total deposits in Islamic banks in Malaysia / Nur Fatihah Mohd Nani @ Mustafa

In this study, a number of variables that could affect the total deposits in Islamic banks are examined using regression to show how they are related to total deposits in Islamic banks. The objectives of this study are to examine the relationship between total deposits in Islamic banks in Malaysia and base lending rate (BLR), inflation rate and money supply (M3). The others an objective is to identify which factors give a significant impact with total deposit at Islamic bank. The main resource of data for this case study is secondary data and the data was collected by quarterly from year 1999 until 2011. The result shows that a total deposit is more dependent on money supply (M3) rather than the base lending rate and inflation rate. The result also shows that the total deposits in Islamic banks have positive relationship with the base lending rate and money supply (M3) whereas the negative relationship was found between the inflation rate and total deposits In Islamic banks. Therefore, finding reveal independent variables which is money supply is significant with the total deposits in Islamic banks but insignificant with the base lending rate and inflation rate. The future researcher can used this study as the references and guideline, the others they can use another independent variables to continue this study such as interest rate, unemployment rate and etc. The futures researchers also can continue the study by investigate in others Asian country such as Singapore and so on. This information also will be benefits to the government and the banks. This is because this information can help them to increase their funds through the saving of money by the depositors and can achieve their future goals