The notion behind Islamic finance is providing alternative Shariah-compliant financial services and products for those who do not willing to access conventional as it contravenes Shariah principles. Currently, expanding throughout Muslim non-Muslim countries. One of the most critical challenges sector extent compliance practices with Therefore, there should be a control mechanism ensuring provi...

This paper investigates the transmission mechanism of dual monetary system from conventional and Islamic policy rates to inflation and output. We apply Granger Causality and VAR methods on monthly data of Indonesian banking, during the period of January 2003 to December 2009. The result shows that conventional policy rate is transmitted to output and inflation, while Islamic policy rate are not...

Thanks to their role as creators and implementers of monetary policy, central banks in most modern countries have the status key financial institutions pivots system stability. During centuries evolution banking, numerous models instruments policy were developed, application which depended largely on political environment dominant economic model specific countries. Unlike conventional Islamic b...

Each market economy uses monetary policy to attain certain macroeconomic goals of price stability, higher growth and employment. A having an interest-based conventional banking system applies mainly tools the objectives policy. In contrast, a with interest-free needs apply Shariah-compliant instruments vis-à-vis for attaining As there is paucity quality research on Sukuk-based policy, current p...

Deposit insurance has become an integral element of the modern banking system, which contributes to safety depositors and business stability banks. This paper analyzes conventional Shariah approach deposit insurance. The aims consider features insurance, including their similarities differences. Based on analysis mentioned approaches considering functions in it can be concluded that Islamic mod...