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The objective of this study is to investigate the impact of selected economic variables on deposits level in the Islamic and conventional banking systems in Malaysia.

Both long‐ and short‐run relationships between these variables are measured by using advanced time series econometrics. These techniques are co‐integration and error correction framework, which are conducted within the vector autoregression framework.

By applying recent econometric techniques, we find determinants such as rates of profit of Islamic bank, rates of interest on deposits of conventional bank, base lending rate, Kuala Lumpur composite index, consumer price index, money supply and gross domestic product have different impact on deposits at both Islamic and conventional banking systems. In most cases, customers of conventional system behave in conformity with the savings behaviour theories. In contrast, most of these theories are not applicable to Islamic banking customers. Therefore, there is a possibility that religious belief plays an important role in the banking decisions of Muslim customers.

As customers are sensitive to rewards, they receive from their deposits, rates of profit of Islamic system must at any time be similar to those of the conventional system. Finally, religious dimension can be considered as an important element to attract more people to deposit their funds in the Islamic system.

To the best of the authors’ knowledge, this is the first attempt to empirically examine the depositor's behaviour in the Islamic banking environment.

This study aims to conduct a systematic literature review on consumer behavior (CB) in Islamic banking (IB), encompassing an overview of researched contexts and topics, identifying literature gaps and proposing a comprehensive future research agenda.

By using bibliometric citation and content analysis, this study investigates 135 documents sourced from Scopus indexed publications.

This study delves into the growing field of CB in IB, offering a comprehensive understanding that encompasses influential journals, theories, research context, characteristics and methods used in IB research.

To the best of the authors’ knowledge, this study is the first to provide a comprehensive review of CB studies in the IB domain detailing research topics, prevailing theories, research settings, important variables and research methods.

The purpose of this paper is to investigate empirically the channels through which Islamic and/or conventional banking can spur economic growth in MENA region.

The study uses a range of developed econometric approaches, including panel cointegration technique, panel Granger causality test and a panel-based vector error correction model (VECM), to analyze explicitly all the causal relationships among Islamic banking, conventional banking development and economic growth in a unified framework.

The empirical results show that Islamic banking in MENA countries not only leads to economic growth but also affects positively and significantly conventional banking development. Thus, Islamic banking has an active role and could be classified as “supply-following” since its development only leads to economic growth, whereas conventional banking, with passive role, could be classified as “demand-following” since it only reacts to economic growth in long run.

The study has two principal limitations. It is conducted within a relatively limited time period and sample of countries. Also, the used models did not take into account the impact of others financial and macroeconomic variables like stock market development, interest rate, inflation and financial crisis.

The results have two main implications. First, in MENA countries, well-functioning Islamic banking sector could not only promote economic growth but also can be served as a development factor for their conventional one. Second, unlike conventional banks, the customer of Islamic banks seems not to be motivated by interest and profits. Rather religious factors are recommended as the main motive for investing and saving in Islamic banks.

The study tries to perceive whether there exists a substitution or complementarity effect between Islamic and conventional banking in promoting economic growth for MENA countries. This situation is neither revealed nor clarified in the relevant literature.

The adoption of Islamic banking (AIB) among customers has remained in the limelight due to its significance in the strategic marketing of Islamic banking (IB) services. Although researchers have devoted a significant effort to investigating the drivers of AIB, little is known about the exclusive barriers hampering AIB. Accordingly, this paper aims to examine the underlying barriers to the adoption of Islamic banking (BAIB) and categorize them into different research clusters using bibliometric analysis.

The data was collected from 132 articles published in Scopus database between 2007 and 2022 and analyzed using VOSviewer to explore BAIB.

The findings clustered the barriers to AIB into three groups, namely, efficiency of IB products and services (service quality, Shariah compliance level, availability of services), behavioral (knowledge and awareness, religiosity, trust and intention) and personal attributes (innovativeness, understanding of mobile/internet banking and technology acceptance) factors of Islamic bank customers.

The sample size of this study is relatively small, as the data was imported from Scopus database only to perform Bibliometric analysis. Future studies may use larger sample size by retrieving data from other databases such as Web of Science and PubMed to develop better research clusters of BAIB.

The dynamic business environment and unprecedented changes in consumer behavior require managers creating suitable conditions to foster adoption of their services and capture a better market share.

Following the findings of this research, future research avenues are identified for strategic embeddedness and global development of IB by overcoming BAIB.