Deposits are like the bloodline for banks as they determine banks' lending capacity and a country's economic savings. However, existence of dual banking system poses challenge to Malaysian Islamic competing deposits. Despite this problem, few investigations were done comprehensively identify factors that could help attract deposits, particularly banks. The purpose paper is fill gap on deposits ...

In order to protect the public's confidence in deposit money, governments usually guarantee bank deposits implicitly or through an explicit deposit insurance system. Thus bank insolvency does not induce immediate bank runs. In many episodes of banking crises, several years passed quietly after bank insolvency had occurred, with the insolvency continuing to develop under the surface, and the ras...

We present a model of bank passivity and regulatory failure. Banks with low equity positions have more incentives to be passive in liquidating bad loans. We show that they tend to hide distress from regulatory authorities and are ready to offer a higher rate of interest in order to attract deposits compared to banks that are not in distress. Therefore, higher deposit rates may act as an early w...

The paper by Manmohan Singh covers a lot of ground, and lays out a number of very interesting issues about the nature of the shadow banking sector, and the extent to which the activities of banks and non-banks are interrelated. In particular, it points out that, in addition to deposits, a significant share of bank lending is ultimately funded by non-banks. This funding can be described as ‘indi...