Impact of non-intermediation activities of banks on Economic Growth and Volatility: An Evidence from OIC-Reference-Cited by-同舟云学术

Impact of non-intermediation activities of banks on Economic Growth and Volatility: An Evidence from OIC

Published:2020-07-25 Issue: Volume: Page:1-16
ISSN:0217-5908
Container-title:The Singapore Economic Review
language:en
Short-container-title:Singapore Econ. Rev.

Author:

ALI MOHSIN¹^ORCID,IBRAHIM MANSOR H.²,ESKANDAR SHAH MOHAMED²

Affiliation:

1. School of Accounting and Finance, Faculty of Business and Law, Taylor’s University Malaysia

2. International Centre for Education in Islamic Finance (INCEIF), Lorong Universiti A Malaysia

Abstract

This paper investigates the impact of non-intermediation activities of banks on economic growth and volatility of OIC. For the purpose, we utilize LSDVC estimation approach using the sample of Organization of Islamic Countries (OIC) member countries for the period of 2001–2013. We find non-intermediation income to be insignificant for both economic growth and volatility of OIC member countries in general though it reduces volatility of Gulf Cooperation Council (GCC) economies. Intermediation activities are found to be insignificantly related with the growth of OIC member countries, but on the other hand, they are found to reduce volatility in OIC member countries. Our results are robust across different specifications and estimators.

Funder

UM-INCEIF Research Grant

Publisher

World Scientific Pub Co Pte Lt

Subject

Economics and Econometrics

Link

https://www.worldscientific.com/doi/pdf/10.1142/S0217590820420023

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