Paper Title
Investigation of Convergence in Bank Interest Rates in Selected Islamic Countries

Money market is an essential part of national economy and plays a significant role in economic development. Banks and Financial institutions facilitate trade and business through organizing receipts and payments, and help develop markets. The present study examines absolute beta convergence and bank interest rate sigma of Islamic countries during 2003-2018, using systematic generalized method of moments (SYS-GMM). Results showed convergence of bank interest rate towards average interest rate of selected Islamic countries at convergence rate of 0.41. Convergence coefficient is significant at 1%. No sigma convergence was found for interest rate of selected Islamic countries. Keywords - Beta Convergence, Sigma Convergence, Bank Interest Rate, Selected Islamic Countries, SYS-GMM