This paper applied the panel VAR approach and the Impulse Response Functions to
investigate the differences in the monetary transmission processes of Islamic and
conventional banks using disaggregated bank-level data for Saudi Arabia over the period
2008Q1–2020Q4. Our findings show that: i) Islamic banks play a significant role in
transmitting monetary policy decisions to the real economy through the balance sheet
channel; ii) Islamic banks' deposits are more responsive to oil price shocks than Islamic …

This paper examines the impact of monetary policy on bank lending in a dual banking
system, ie Malaysia. Making use of an unbalanced panel data set of 38 Islamic and
conventional banks covering mostly 2001-2014, we find evidence that variations in
monetary policy affect lending growth of Islamic banks and, to some extent, conventional
banks. The results further reveal that, in conformity with studies using aggregate Islamic
financing data, the Islamic financing growth reacts more strongly to monetary policy …