The effects of interest rate on Islamic bank financing instruments: Cross-country evidence from dual-banking systems

2020 ◽  
Vol 62 ◽  
pp. 101292
Author(s):  
Mirzet Šeho ◽  
Obiyathulla Ismath Bacha ◽  
Edib Smolo
Keyword(s):  
Interest Rate ◽  
Banking Systems ◽  
Islamic Bank ◽  
Bank Financing ◽  
Cross Country

scholarly journals PENGARUH FAKTOR INTERNAL DAN EKSTERNAL BANK TERHADAP KEMAMPUAN BANK SYARIAH DALAM MENYALURKAN PEMBIAYAAN

2020 ◽  
Vol 7 (8) ◽  
pp. 1484
Author(s):  
Indah Rahmawati ◽  
Nisful Laila
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Time Series Data ◽  
Series Data ◽  
Islamic Bank ◽  
Distributed Lag ◽  
Bank Financing ◽  
Long Run ◽  
Financing Risk ◽  
Negative Effect

This study aims to review the effect of internal bank factors and macroeconomics factors such as liquidity, financing risk, profit-loss sharing rate, the level of securities ownership, interest rate, inflation, and economic growth against Islamic bank financing in Indonesia.  The data used for this research is time series data with monthly frequency from January 2014 to December 2019. Autoregressive Distributed Lag (ARDL) Model results show that in the short term, inflation and economic growth have a significant positive effect on Islamic bank financing. While variable liquidity, financing risk, the level of securities ownership and interest rate have negatively correlated with Islamic bank financing. In the long run liquidity, the level of securities ownership, and economic growth is positive and significant, while financing risk and interest rate have a significant negative effect on Islamic bank financing. In otherwise, profit-loss sharing rate is negative and not significant both in the short and long run.  Keywords: ARDL, Financing, Islamic Banking, Internal Bank Factors, External Bank Factors

Determinants of Islamic Bank Profitability: Evidence from Indonesia

2020 ◽  
Vol 5 (1) ◽  
pp. 1-13
Author(s):  
Puji Sucia Sukmaningrum ◽  
Kashan Pirzada ◽  
Sylva Alif Rusmita ◽  
Fatin Fadhilah Hasib ◽  
Tika Widiastuti ◽  
...  
Keyword(s):  
Interest Rate ◽  
Quality Management ◽  
Banking Industry ◽  
External Factors ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Internal Factors ◽  
Bank Profitability ◽  
Islamic Bank

Objective – Islamic Banks have a distinct advantage that is not only conduct a commercial operation, but to also conduct social operations. Therefore, Islamic Banks plays an important role in developing the Indonesian economy. The aim of this study is to investigate the impact of internal and external factors that affect the profitability of Islamic Banks in Indonesia. Methodology/Technique – The methodology of this research is multiple regression. The object of this research is the Islamic banking industry in Indonesia. Internal factors include size, liquidity, asset quality, management, and efficiency ratio. External factors include interest rate and inflation. Return on Assets is used to measure profitability. The monthly data is collected from the financial reports of Islamic Banks between 2011 to 2016. Findings – The findings show that size, liquidity, assets quality, management ratio, interest rate and inflation lead to a greater Return on Assets (profitability) in Islamic Banks in Indonesia. Efficiency however does not have a significant effect on profitability of Islamic Banks in Indonesia. Novelty – Based on the results of this research, it can be concluded that the Islamic banking industry can use those variables to improve the profitability of Islamic banks in the future. In addition, there are two variables that affect the profitability of Islamic banking industry. For the Islamic banking industry should anticipate the movement of inflation and interest to improve the profitability of Islamic banks. Type of Paper: Empirical paper. Keywords: Islamic Banks; Profitability; Internal Factors; External Factors; Indonesia. Reference to this paper should be made as follows: Sukmaningrum, P.S; Pirzada, K; Rusmita, S.A; Hasib, F.F; Widiastuti, T; Hendratmi, A. 2020. Determinants of Islamic Bank Profitability: Evidence from Indonesia, J. Fin. Bank. Review, 5 (1): pp. 01 – 13 https://doi.org/10.35609/jfbr.2020.5.1(1) JEL Classification: G21, G24.

scholarly journals Islamic Bank Financing and Its Effects on Economic Growth: A Cross Province Analysis

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Muhammad Anif Afandi ◽  
Muhammad Amin
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Islamic Banking ◽  
Fixed Effects Model ◽  
Islamic Bank ◽  
Bank Financing ◽  
Panel Data Regression ◽  
Data Regression ◽  
Almost All

Islamic banking industry shows a reasonably good development, one of which is marked by an increase in service coverage in almost all provinces in Indonesia. However, the question is how far Islamic banking capable of contributing to the improvement of Indonesia's economic growth? The purpose of this research is to examine the role of Islamic banking in promoting inclusive economic growth with a sample of 33 provinces in Indonesia. The method used in this research is panel data regression using the fixed effects model. The results show that Islamic bank financing does not have an impact on Indonesia's economic growth. In other words, the results of the research provide information that the existence of Islamic banking in Indonesia has not yet give a significant impact on the welfare of Indonesian society

scholarly journals BANK FINANCING AND FIRM GROWTH: THE ROLE OF ISLAMIC BANK FINANCING

2019 ◽  
Vol 9 (4) ◽  
pp. 181-188
Author(s):  
Mahmoud Al-Rdaydeh ◽  
Joriah Muhammad ◽  
Haslindar Ibrahim
Keyword(s):  
Firm Growth ◽  
Islamic Bank ◽  
Bank Financing

scholarly journals Literature Study on Murābaḥah Financing in Islamic Banking in Indonesia

2018 ◽  
Vol 9 (1) ◽  
pp. 25 ◽  
Author(s):  
Ahmad Maulidizen
Keyword(s):  
Islamic Banking ◽  
Literature Study ◽  
Significant Growth ◽  
Islamic Bank ◽  
Bank Financing ◽  
Principle Of Justice ◽  
Optimal Function ◽  
Number Of Customers

<p>Islamic banking in Indonesia has experienced significant growth, including assets, financing provided and the number of customers. Islamic bank financing 70-80% is given to the community by using the contract of murābaḥah, in the form of consumptive and productive. Islamic bank operations must be guided by Fatwa of the National Sharia Council in order to carry out its optimal function economically and to run the Shari'a comprehensively. Therefore, this article will explain the concept of murābaḥah conceptually and application in Islamic banking in Indonesia. The purpose of writing this article so that the implementation of Murābaḥah contract in Islamic Bank in Indonesia can be in accordance with the principles of Shari'a that put forward the principle of justice and no party is harmed.</p><p>Perbankan syariah di Indonesia telah mengalami pertumbuhan yang signifikan, termasuk aset, pembiayaan yang diberikan dan jumlah pelanggan. Pembiayaan bank syariah 70-80% diberikan kepada masyarakat dengan menggunakan kontrak murābaḥah, dalam bentuk konsumtif dan produktif. Kegiatan bank syariah harus dipandu oleh Fatwa Dewan Syariah Nasional untuk menjalankan fungsi optimalnya secara ekonomis dan menjalankan syariat secara komprehensif. Oleh karena itu, artikel ini akan menjelaskan tentang konsep murābaḥah secara konseptual dan aplikasinya pada Bank Islam di Indonesia. Tujuan penulisan artikel ini agar pelaksanaan kontrak Murābaḥah di Bank Syariah di Indonesia dapat sesuai dengan prinsip syariah yang mengedepankan asas keadilan dan tidak ada pihak yang dirugikan.</p>

scholarly journals DETERMINANT FACTORS OF MSME FINANCING IN ISLAMIC BANK (STUDY CASE IN INDONESIA)

2019 ◽  
Vol 3 (1) ◽  
pp. 75-81
Author(s):  
Irena Paramita Pramono ◽  
Rudy Hartanto ◽  
Tria Apriliana
Keyword(s):  
Time Series Data ◽  
Third Party ◽  
Series Data ◽  
Determinant Factors ◽  
Islamic Bank ◽  
Bank Financing ◽  
Lack Of Information ◽  
Medium Enterprise ◽  
High Employment ◽  
Study Case

Micro, Small and Medium Enterprise (MSME) is an important segment of the Indonesian economy. The amount of MSME in Indonesia is 99,9% of the total entrepreneurs, it has high employment absorption and has a big contribution to the GDP. Despite the importance of MSME in Indonesia, financing, and lack of information become the main problem in MSMEs growth. In addition to financial assistance, Indonesia's MSMEs also need partner and guidance to help them grow. Islamic bank is an important segment in Indonesia's banking industry. We believe with a good coherency within Islamic Bank and MSME, both can support each other better either in financial aspect and management aspect. Therefore this research try to give an understanding what is the determinant factors of Islamic Bank financing for MSME, either in bank umum syariah and unit usaha syariah. This research use time series data of Islamic Bank financing, which monthly released by Otoritas Jasa Keuangan. There are several factors examined in this paper, which are Net Performing Financing (NPF), Return On Financing (ROA), Third Party Funds or Dana Pihak Ketiga (DPK), number of offices, number of workers and policy rate.

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