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Conventional bank and Islamic banking as institutions: Similarities &…

- - - - He stresses that the well-functioning financial institution will lead to innovation in technology because of the resource allocation efficiency from the low sector to high sector.
        Hence, the policy that was suggested on the finance-growth hypothesis on this study lacks theoretical and empirical foundations, as there are two outcomes
        
        financial reforms create the contribution on development;
        
        financial development is not an intermediate agent to promote economic growth
    - - The financial design will have an impact on the running of the financial system. Different financial designs for countries will give an implication in various patterns. Particularly, institutional economics are crucial in the establishment of the financial design. Generally, different financial systems’ structures will create different implications to the economy in particular
    - - Theoretically, the circuit model is considered as a strong model to explain the role of financial institutions in the context of finance-growth nexus. It is used to show that the integrated bank credit and liquidity play an important role of how banks give their responses in the economy. This circuit is used to analyze any financial and economic changes. This circuit can integrate the real and monetary dimensions of the economy and can analyze the relationship between them by the interactions of micro groups of agent because of the impact of banking and finance on economic stability and efficiency