Table 6.

Pass-through of KIBOR to lending Rate – Islamic banks

Variable−1−2−3−4
Coefficient
Long run1.09***0.96***1.09***1.00***
Short run0.67***0.61***0.65***0.38***
Speed of adjustment−0.23***−0.32***−0.26***−0.28***
Control variables
Real GDP growthNot sigNot sig
Exchange rateNot sigNot sig
Government borrowingNot sigNot sig
Stock marketNot sigNot sig
Post-Covid periodNot sigSig at 5%
ConstantNoYesNoYes
TrendNoYesNoYes
Observations236236236236
R-squared0.350.370.360.36
Note(s):

***p < 0.01; **p < 0.05; *p < 0.1

Source(s): Author’s own work

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