Abstract
The banking sector is often dependent on inflections resulting from any change in monetary policy. In other words, it is a channel for transmitting monetary policy from the monetary sphere to the real sphere.In this context, it seems to us essential the behaviour of bank credit offer in a dual system to evaluate the effectiveness of the transmission of monetary policy. This article aims to develop a theoretical model of banking behaviour in an imperfect competitive environment by adapting the Monti-Klein model to a Cournot banking duopoly composed of conventional banks and Islamic banks. The results of the model reveal that banking competition in the dual banking sector can be a source of rigidity in the transmission of monetary policy, due to the divergence between Islamic banks and conventional banks.
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