The pivotal objective of any financial system is to maintain a stable and efficient framework for the distribution and allocation of scarce monetary resources. This book attempts to examine the monetary stability process under the dual banking system. It selects Malaysia as a case where the government aims to run Islamic and conventional banking systems on a parallel basis. The book starts from investigating factors that have affected Islamic and conventional banks deposits held under various schemes. It then defines and develops new Islamic and conventional (M1 and M2) intermediate...