scholarly journals FINANCING-TO-VALUE (FTV) POLICY AND ITS IMPACT ON RESIDENTIAL PROPERTY PRICES IN INDONESIA

2020 ◽  
Vol 6 (3) ◽  
Author(s):  
Imam Wahyudi Indrawan ◽  
Maya Puspa Rahman ◽  
Nurfatihah Ahmad Senusi
Keyword(s):  
Panel Data Analysis ◽  
Banking System ◽  
Residential Property ◽  
Analysis Method ◽  
Macroprudential Policy ◽  
Systemic Risks ◽  
Property Price ◽  
Islamic Financial Institutions ◽  
The Stability ◽  
The Impact

Financing-to-value (FTV) policy is a macroprudential policy currently used by the central banks to maintain the stability of financial systems and prevent systemic risks. In Indonesia this is particularly the case in relation to financing of the property sector by Islamic financial institutions. This paper aims to analyse the impact of FTV policy on the residential property price index (RPPI) in Indonesia using a panel data analysis method. Indonesia is chosen in this study as it is one of the countries implementing FTV policy in its Islamic banking system. There are three important findings to be drawn from the study. First, FTV policy ratios significantly affect RPPI.

scholarly journals Are House Prices Driven by Capital Flows? Evidence from Singapore

2016 ◽  
Vol 07 (01) ◽  
pp. 1650006 ◽  
Author(s):  
Hwee Kwan Chow ◽  
Taojun Xie
Keyword(s):  
Capital Flows ◽  
Price Index ◽  
House Prices ◽  
House Price ◽  
Capital Inflows ◽  
Residential Property ◽  
Foreign Direct Investments ◽  
Short Term ◽  
Property Price ◽  
The Impact

This paper investigates whether real house price appreciations can be attributed to the surge in real capital inflows into Singapore. We proxy capital flows by using the amount of Foreign Direct Investments (FDI) to real estate capturing the foreign purchases of property in Singapore which we deflate by the private residential property price index. Notwithstanding the absence of a cointegrating relationship, our results support the hypothesis that lagged short term fluctuations in capital inflows are positively associated with the growth rates of house prices over the last decade. We also provide evidence that macroprudential measures implemented by Singapore reduced the impact of capital inflows on house price appreciation by more than half, suggesting the effectiveness of such market cooling measures in weakening the credit growth channel.

Features of Forming of Profits of Commercial Banks in Terms of Coronaries

2020 ◽  
Vol 8 (6) ◽  
pp. 75-82
Author(s):  
A. Novikov ◽  
A. Zverev ◽  
M. Mishina
Keyword(s):  
Commercial Banks ◽  
Banking System ◽  
Internal Factors ◽  
Russian Economy ◽  
Internal Characteristic ◽  
The Stability ◽  
Constituent Elements ◽  
The Impact ◽  
Entire Economy

A significant role of the banking system in ensuring the functioning of the entire economy, by means of organizing the movement of borrowed capital between individual industries and the implementation of financial needs is achieved only if this system, and therefore its constituent elements, are stable. In this regard, the stability of the banking system should be considered as a fundamental internal characteristic, which ensures the existence and stable development of the Bank in a market economy under the influence of external and internal factors. In 2020, commercial banks were faced with the impact of the coronavirus pandemic on the Russian economy and the banking system in particular. At the same time, the current situation of banks ' functioning is characterized not only by the presence of a corona crisis, but also by the internal development of the system itself, which, following the uberization of the world economy, dictates to commercial banks the need to develop and implement financial technologies and form ecosystems. In these conditions, the need for commercial banks in financial resources increases, which is reflected in the increasing role of profit in the Bank's activities and development. This article focuses on the impact of the coronavirus pandemic on the banking system of the Russian Federation and the economy as a whole, and also identifies the features of profit formation and the specifics of the functioning of commercial banks in the coronavirus crisis period.

Impacts of Indoor Environmental Quality (IEQ) Elements on Residential Property Market: A Review

2015 ◽  
Vol 73 (5) ◽  
Author(s):  
Asmma’ Che Kasim ◽  
Megat Mohd Ghazali Megat Abdul Rahman ◽  
Maryanti Mohd Raid
Keyword(s):  
Environmental Quality ◽  
Market Price ◽  
Residential Building ◽  
Green Building ◽  
Real Estate Market ◽  
Residential Property ◽  
Indoor Environmental Quality ◽  
Property Market ◽  
Property Price ◽  
The Impact

Indoor environmental quality (IEQ) is among six criteria of Green Building Index (GBI) that need to be achieved by building owner in order to recognize their building as ‘green’ in Malaysia. The benefit of IEQ is to create conducive environment for human health. Besides influenced their overall image, leasing and resale value of the buildings, does indoor environmental quality (IEQ) features will give impact on real estate market in terms of price and rental particularly for residential building property? Therefore, this paper will review the broad literature regarding the impacts of indoor environmental quality (IEQ) for residential building property and its implication to towards property price and rental. The early hypothesis of this paper anticipates that indoor environmental quality (IEQ) features will indirectly increase residential property market price and rental. From this paper, it is hope that the positive impacts of these features will encourage building owners, developers and other main development actors to put these criteria into the same consideration as other criteria in GBI as one of the way to compensate the impact of the building towards economic, environment and social.

scholarly journals The Theoretical Framework of Macroprudential Policy and its Place in the Scheme of Economic Policy

2016 ◽  
Vol 1 (2) ◽  
pp. 22-31
Author(s):  
János Kálmán
Keyword(s):  
Economic Policy ◽  
Historical Context ◽  
Theoretical Framework ◽  
Economic Policies ◽  
Macroprudential Policy ◽  
Macroprudential Regulation ◽  
Regulation And Supervision ◽  
Systemic Risks ◽  
Basic Concepts ◽  
The Stability

Microprudential regulation and supervision – focused on institutional risks – cannot guarantee the stability of the financial system. Therefore special attention should be paid to macroprudential regulation and supervision to address systemic risks. The purpose of this study is to provide the historical context and a theoretical framework for macroprudential regulation and supervision – a new area of economic policy. To this end, we shall examine the causes for the spread of macroprudential policy, its basic concepts, and thirdly, its place within the scheme of economic policies.

scholarly journals DETERMINANT OF CAPITAL RATIO: A PANEL DATA ANALYSIS ON STATE-OWNED BANKS IN INDONESIA

2014 ◽  
Vol 16 (4) ◽  
pp. 395-414 ◽  
Author(s):  
Pamuji Gesang Raharjo ◽  
Dedi Budiman Hakim ◽  
Adler Haymans Manurung ◽  
Tubagus Nur Ahmad Maulana
Keyword(s):  
Panel Data ◽  
Panel Data Analysis ◽  
Banking System ◽  
Interest Rate Risk ◽  
Jel Classification ◽  
Panel Data Regression ◽  
Structure State ◽  
Asset Growth ◽  
The Stability ◽  
Level Of Significance

Capital has an important role in maintaining safety of banks and in order to create a sound banking system. Banks are required to have a sufficient amount of capital, both to support its business expansion as well as a buffer to prevent any unexpected loss that banks might face and absorb losses arising from a variety of risks. Eventhough consists of four banks, State owned banks in Indonesia are catalystor for the banking industry in Indonesia. The failure of state-owned banks can affect the stability of Indonesian banking system. This study aims to study and analyze determinants of capital ratio of state-owned banks. Several variables have been used in previous studies to be used a proxy. The study applied panel data regression model. The capital ratio of state-owned banks is affected by asset growth (LNSIZE), equity to total liabilities ratio (EQTL), non performing loan (NPL), interest rate risk (IRR), and operational cost to operational revenue ratio (BOPO) on a different level of significance.  Keywords: Capital structure, state-owned commercial banks, panel data JEL Classification: C23; G21; G32

scholarly journals Penerapan Etika Bisnis Islam Terhadap Kelangsungan Pembiayaan SPBU Mini Di KSPPS Bina Syariah Ummah Jawa Timur

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Agus Wahyu Irawan
Keyword(s):  
Business Ethics ◽  
Financial Institutions ◽  
Field Studies ◽  
Analysis Method ◽  
Islamic Ethics ◽  
Existing Problems ◽  
Gas Stations ◽  
Islamic Financial Institutions ◽  
Islamic Business Ethics ◽  
The Impact

Islamic financial institutions are developed as an alternative to the practice of people who want sharia transactions. Criticism of conventional financial institutions by the concept of sharia is not rejecting cooperatives. However, providing solutions to the transaction community that is avoided from the elements of usury, gambling (maysi>r), uncertainty (ghara>r), and inner. With the prohibition of usury, maysi>r, ghara>r, and heart in the transactions of financial institutions, they can instead apply contracts in accordance with Islamic business ethics. The purpose of this article is to find out the application of Islamic business ethics to the financing of mini gas stations at KSPPS Bina Syariah Ummah, East Java. The method used in writing this article is a descriptive qualitative. Analysis method is based on field studies. Analytical studies are intensive testing, using various sources of qualitative evidence. From the data obtained is then arranged according to the rules and analysis in accordance with the rules of writing so as to facilitate the discussion of existing problems. Methods of data collecting: interview, observation and documentation data. With this method, the author wants to examine how Islamic business ethics views about financing mini gas stations. The results of this study shows that  application of business ethics in business is appropriate and good, the impact on the business is also good. So Islamic business ethics has been tested and brought benefits if applied properly. Keywords: islamic ethics implementation, SPBU funding continuity

scholarly journals Impact of Basel Accord on Banking System (Evidence from Islamic Banks of Pakistan)

2015 ◽  
Vol 1 (2) ◽  
pp. 1
Author(s):  
Muhammad Mehtab Azeem ◽  
Akin Marsap ◽  
Cigdem Ozari
Keyword(s):  
Banking System ◽  
Islamic Banking ◽  
Basel Iii ◽  
Islamic Banks ◽  
Basel Accord ◽  
Trade Off ◽  
Financial Anomalies ◽  
Conventional Banks ◽  
The Stability ◽  
The Impact

Banks and bank regulatory authorities are vital players for the stability of economy and financial system in potential way. Basel III and its related to capital’s requirement obligations have been effective useful tool for the banking system. Since, this is tough job for the bankers to maintain the liquidity for hedging the future risk but it also been expensive for bankers to keep the extra capital and become more liquid since this discourage the provision of loans but promote the credit ratings. However, it has become necessary to investigate the impact of Basel III on Islamic banking system and analyze the trade off. The study analyzes empirically on the (Financial) anomalies in term of three factors (i) Financial size (ii) Spread and (iii) Provisions for non performing financing. The study also discusses the impact of Basel III on Islamic banking performance if applicable, in context of trade off and impact on country’s economy. We can ask that Basel III framework is difficult to be consistent for conventional banks; we can also realize that either new regulation will be flexible for Islamic banks under Basel III while Islamic and Conventional banks are totally different. Further, we shall estimate if the Basel III is more or less important in Islamic banks of Pakistan than conventional banks. At the end, we shall see from theoretical framework either the impact of Basel III is important for Islamic banks if and only if Islamic banks adopt to follow Basel III regulations and analyzing the potential influence on conventional banks.

scholarly journals PENGARUH HARGA PROPERTI RESIDENSIAL DAN KEBIJAKAN FINANCING TO VALUE TERHADAP STABILITAS PERBANKAN SYARIAH DI INDONESIA

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Ahmad Fatoni
Keyword(s):  
Commercial Banks ◽  
Time Series Data ◽  
Secondary Data ◽  
Series Data ◽  
Residential Property ◽  
Correction Model ◽  
Property Price ◽  
Banking Stability ◽  
The Stability

This study aims to analyze the effect of residential property prices and Financing to Value policies on the stability of Islamic Commercial Banks in Indonesia. This study uses secondary data, namely time series data from all Islamic Commercial Banks in Indonesia during the period March 2010 to December 2020. The model used in this study is the Error Correction Model (ECM). The results of the study found that the Residential Property Price Index of small and medium types in the long term has an influence on the stability of Islamic Commercial Banks. However, each of them supports a different hypothesis, namely the collateral value hypothesis and the deviation hypothesis. Meanwhile, it was found that in the long and short term the Financing to Value policy had an influence on the stability of Islamic Commercial Banks in Indonesia. Keywords: Islamic Banking Stability, Property Price, Financing to Value

scholarly journals Systemic Risk in the Interbank Market with Overlapping Portfolios

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-12 ◽  
Author(s):  
Shanshan Jiang ◽  
Hong Fan
Keyword(s):  
Interest Rate ◽  
Systemic Risk ◽  
Banking System ◽  
Bipartite Network ◽  
Investment Risk ◽  
Interbank Market ◽  
Operating Rules ◽  
Proposed Model ◽  
The Stability ◽  
The Impact

The increasing frequency and scope of the financial crisis have attracted more attention in the research of the systemic risk of banking system. A new model for the interbank market with overlapping portfolios is proposed to simulate a banking system in this work. The proposed model uses a bipartite network of banks and their assets to analyze the impact of bank investment on the stability of the banking system. In addition, this model introduces investment risk and allows banks to make up for liquidity by selling devaluated assets, which reflects the operating rules of the banking system more realistically. The results show that allowing banks to sell devaluated assets to make up for liquidity can improve the stability of the banking system and the interbank market can also improve the stability of the banking system. For the investment of banks, the investment risk is an uncertain factor that affects the stability of the banking system. The proposed model further analyzes the impact of average investment interest rate, savings interest rate, deposit reserve ratio, and investment asset diversity on the stability of the banking system. The model provides a tool for policy-makers and supervision agencies to prevent the systemic risk of banking system.

scholarly journals Contribution of Governance to Ensure the Stability of Islamic Banks: A Panel Data Analysis

2018 ◽  
Vol 8 (3) ◽  
pp. 140 ◽  
Author(s):  
Bakkeri Amine
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Financial Institutions ◽  
North Africa ◽  
Audit Committee ◽  
Best Practice ◽  
Panel Data Analysis ◽  
Islamic Banks ◽  
Islamic Financial Institutions ◽  
The Stability

The succession of crises imposed the need to establish the «Governance best practice ». This article tries to illustrate empirically the contribution of the mechanisms of the governance to ensure the stability of Islamic Financial Institutions. Using Zscore as a stability and solidity of IFI, our study focus on one sample of 30 Islamic banks taking place in 16 countries in North Africa and the Middle East shows that the size and the independence of the Board, the competence of the audit committee and the remuneration constitute the mechanisms helping to insure the stability of Islamic Financial Institutions. The duality seems to affect negatively the stability of the Islamic banks.

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