Determinants of Islamic Rural Bank Financing in Indonesia

Arif Widodo, Istianah Asas

Abstract


This research is designed to empirically investigate the determinants of Islamic rural banking financing in Indonesia after 2008 global financial crisis covering period 2009.1-2014.12. The methods applied in this research are Error Correction Model (ECM) and VAR/VECM. The results of ECM model demonstrate that the variable third party funds (DPK) and non-performing financing can significantly affect Islamic rural banking financing both in the short run and long run, while Return on Asset (ROA) and Profit-and-loss sharing does not have a significant influence. Islamic rural bank financing, however, was influenced by inflation and exchange rate as the proxy of macroeconomic variables in the short and long run. Furthermore, Impulse Response Function (IRF) and variance decomposition results show that Profit-and-loss sharing (PLS) has the largest positive impact to financing (39.08%), followed by third party fund (19.6%) and inflation (8.9%). While, the variables that contribute to reduce financing are non-performing financing (9.02%), followed by ROA (7.76%) and exchange rate (2.48%).

Keywords


Islamic rural bank, financing, Profit-and-loss sharing, Error Correction Model, VAR/VECM.

Full Text:

PDF

References


Achsani, Noer Azam, Oliver Holtemoller, and Hizir Sofyan. (2005). Econometric and Fuzzy Modeling of Indonesian Money Demand. In Satistical Tools for Finance and Insurance, edited by Pavel Cizek, Wolfgang Hardle, and Rafal Weron, 249-270. Berlin Heidelberg, Germany: Springer-Verlag.

Antonio, M. Syafii. (2012). Bank Syariah: dari Teori ke Praktik. Jakarta: Gema insani.

Ascarya, Heni Hasanah and Noer Azam Achsani. (2008). Perilaku Permintaan Uang dalam Sistem Moneter Ganda di Indonesia. Buletin Ekonomi Moneter dan Perbankan (Juli): 53-78.

Ascarya. (2009). Lessons Learned from Repeated Financial Crises: An Islamic Economic Perspective. Bulletin of Monetary Economics and Banking 12(1): 27-69.

Ascarya. (2012). Transmission Channel and Effectiveness of Dual Monetary Policy in Indonesia. Bulletin of Monetary Economics and Banking 14(3): 269-298.

Baltagi, Badi H. (2011). Econometrics. 5th Edition. London, New York: Springer Heidelberg Dordrecht.

Berrospide, Jose M and Edge, Rochelle M. (2010). The Effects of Bank Capital on Lending: What Do We Know, and What Does It Mean?. International Journal of Central Banking 6(4): 5-54.

Burhanuddin, Susanto.(2008). Hukum Perbankan Syariah di Indonesia. Yogyakarta: UII pres.

Domowitz, I. and I. Elbadawi. (1987). An Error-Correction Approach to Money Demand: The Case of Sudan. Journal of Development Economics 26: 257-275.

Enders, Walter. (2004). Applied Econometric Time Series. John Wiley & Sonc, Inc.

Gambacorta, Leonardo and Marques-Ibanez, David. (2010). The New Bank Lending Channel: lesson from crisis. Journal of Financial Stability.

Ghazali, Imam. (2013). Aplikasi Analisis Multivariate Dengan Program IBM SPSS 21. Semarang: Badan Penerbit Universitas Diponegoro.

Gujarati, Damodar N. (2004). Basic Econometrics. Fourth Edition. London: McGraw-Hill.

Haryati, Sri. (2009). Pertumbuhan Kredit Perbankan di Indonesia: Intermediasi dan Pengaruh Variabel Makro Ekonomi. Jurnal Keuangan dan Perbankan, Vol. 13, No. 2, pp. 299-310.

Huda et. al. (2009). Ekonomi Makro Islam: Pendekatan Teoritis. Jakarta: Kencana Prenada Media Group.

Insukindro. (1998). Pendekatan Stok Penyangga Permintaan Uang: Tinjauan Teoritis dan Sebuah Studi Empirik di Indonesia. Ekonomi dan Keuangan Indonesia XLVI(4): 451-471.

Karim, Adiwarman A. (2007). Ekonomi Makro Islam. Jakarta: Raja Grafindo Persada.

----------------. (2010). Bank Islam: Analisis Fiqh dan Keuangan. Jakarta: Raja Grafindo.

Kasmir. (2012). Manajemen Perbankan. Jakarta: Raja Grafindo Persada.

Kuncoro, Mudrajad. (2007). Metode Kuantitatif: Teori dan Aplikasi Untuk Bisnis dan Ekonomi. Yogyakarta: UPP STIM YKPM.

Kusnandar, Engkus. (2012). Analisis Faktor-Faktor Yang mempengaruhi Pemberian Kredit UMKM Oleh Perbankan Di Indonesia. Tesis. Fakultas Ekonomi Universitas Indonesia.

Pandia, Frianto. (2012). Manajemen Dana dan Kesehatan Bank. Jakarta: Rineka Cipta.

Pratama, Billy Arya. (2010). Faktor-Faktor Yang Mempengaruhi Kebijakan Penyaluran Kredit Perbankan (Studi pada Bank Umum di Indonesia Periode Tahun 2005 - 2009). Tesis. Semarang: Program Pasca Sarjana Universitas Diponegoro.

Revania, L. (2014). ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI IMPOR JAGUNG DI INDONESIA TAHUN 1982 2012. JEJAK: Jurnal Ekonomi Dan Kebijakan, 7(1), 102-112. doi:http://dx.doi.org/10.15294/jejak.v7i1.3847

Sakti, Ali. (2007). Sistem Ekonomi Islam: Jawaban atas Kekacauan Ekonomi Modern. Jakarta: Paradigma & Aqsa Publishing.

Sudarsono, Heri. (2008). Bank Dan Lembaga Keuangan Syariah: Deskripsi Dan Ilustrasi. Yogyakarta: Ekonisia.

Sudarsono, Heri. (2009). Dampak Krisis Keuangan Global terhadap Perbankan di Indonesia: Perbandingan antara Bank Konvensional dan Bank Syariah. Jurnal Ekonomi Islam 3(1): 12-23.

Sumitro, Warkum. (2004). Asas-asas perbankan Islam dan Lembaga-Lembaga terkait. Jakarta: Raja Grafindo.

Swamy, Vighneswara. (2012). Financial Instability, Uncertainty and Bank Lending Behavior. International Journal of Banking and Finance 9(4): 74-95.

Utama, E. R. (2013). Analisis Faktor-Faktor yang Mempengaruhi Impor Minyak Mentah di Indonesia. Journal of Economics and Policy 7(1): 85-91.

Utari, G.A Diah., Arimurti, Trinil., Kurniati, and Ina Nurmalia. (2012). Pertumbuhan Kredit Optimal. Buletin Ekonomi Moneter dan Perbankan.

Widarjono, Agus. (2013). Ekonometrika: Pengantar dan Aplikasinya, Edisi Keempat, Yogyakarta: UPP STIM YKPN.




DOI: https://doi.org/10.15294/jejak.v10i2.11293

Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.