Table 1

Definition of variables

NotationDefinition of variablesExplanation
EFFREffective Federal Funds RateThe Fed's interest rate as a proxy for the world interest rate
7DRRBI rate/7 days repo rateOfficial interest rate for 3 months
SBISOutstanding placement on Sharīʿah SBIOutstanding placement on Sharīʿah SBI
RDEPEquivalent rate of return of Sharīʿah depositsInterest rates 1-month deposits
RFINEquivalent rate of return Sharīʿah financingAverage level of profit sharing ratio for banks
DEPTotal Sharīʿah banking depositsTotal deposits successfully collected Islamic banks
FINFinancingTotal financing provided by Islamic banks
PInflationMonthly nominal inflation rate

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