Determinants of deposits in conventional and Islamic banking: a case of an emerging economy

摘要: Purpose The purpose of this paper is to examine the impact base lending rate (BLR), consumer prices, gross domestic product, money supply (M3), Karachi stock exchange composite index, KIBOR, and profit Islamic banks on deposits both conventional in Pakistan. Design/methodology/approach Quarterly data six years (2006-2011) are obtained from 30 banks, consisting 25 five banks. The short-run as well long-run relationships among these variables examined by utilizing advanced time series approach. Bounds testing autoregressive distributed lag have been used cointegration error correction framework for dynamics. Findings The empirical results reveal that such interest M3, BLR different bank deposits. Depositors sensitive returns received A boost increases but decreases those banks. Originality/value This study signifies customers motivated profit. This indicates normal behavior customers, hence endures substitution effect system. has important implications offer more competitive rates with respect order collect It also identifies relevant policy implication central country.