Profit-Sharing in a Model of Bank Behaviour

ABSTRACT The establishment of Islamic banks has brought forwqrd three basic issues. First, there are questions concerning the operation of a banking system which is prohibiledfrom paying and receiving interest rates. Second, there are issues arisingfrom the coexistence of Islamic banks with conventional banks. Third, there is the question of how monetqry policy can be expected to operate in an interest-free banking system. These issues have been integrated into a model of bqnk behaviour which incorporates outputs, inputs, profit-sharing and monetary policy. The results shows competitive interactions between qssets and liqbilities, and between Islamic banks and conventional banks, so the impact of profit-sharing can be explicitly and directly assessed. ABSTRAK Penubuhan bank Islam menghasilkan dua isu asas. Pertama, persoalan berkenaan operasi sistem bank yang tidak dibenarkan membayar dan menerima kadar bunga. Kedua, isu yang timbul daripada kewujudan bersama bank Islam dan bank konvensional. Ketiga, persoalan bagaimana dasar kewangan dijangkakan beroperasi dqlqm sistem bank tanpafaedah. Isu ini telah digabungkan dalam model kelakuan bank yang mengqmbil kira output, input, perkongsian untung dan dasar kewangan. Keputusan menunjukkan interaksi yang kompetitif antara aset dan tanggungqn, dan antara bank Islqm dan bank konvensional. Oleh itu kesan perkongsian untung boleh dinilai secarq tersirat dqn secara langsung