The effect of macroeconomic variables on non performance financing of Islamic Banks in Indonesia
This research is going to discuss about the determinant macro variables and bank’s behavior determinant credit risk on Islamic rural bank in Indonesia. It could be seen on macro variables such as inflation, exchange rate, Jakarta I slamic index (JII) and money supply (M2), and bank’s behavior such...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universitas Islam Indonesia
2015-10-01
|
| Series: | Economic Journal of Emerging Markets |
| Subjects: | |
| Online Access: | https://103.220.113.119/JEP/article/view/4283 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849321319373471744 |
|---|---|
| author | Latifah Dian Iriani Imamudin Yuliadi |
| author_facet | Latifah Dian Iriani Imamudin Yuliadi |
| author_sort | Latifah Dian Iriani |
| collection | DOAJ |
| description |
This research is going to discuss about the determinant macro variables and bank’s behavior determinant credit risk on Islamic rural bank in Indonesia. It could be seen on macro variables such as inflation, exchange rate, Jakarta I slamic index (JII) and money supply (M2), and bank’s behavior such as financing. Research methodology used at this study is Vector Error Correction Model (VECM). Following these procedures, it applies Unit Roots Test, Augmented Dickey Fuller Test, Lag Length Criteria Test, Correlation Matrix – Johansen Julius Co-integration Test, VECM Estimation, Impulse Response and Variance Decomposition Test. The result show that both bank behaviors and macroeconomic variables are significant affecting non-performing financing (NPF). The banking need more careful to manage internal and external factors that influence non-performing financing (NPF).
|
| format | Article |
| id | doaj-art-54614169a53848bb9bf045f9fa1e7ef3 |
| institution | Kabale University |
| issn | 2086-3128 2502-180X |
| language | English |
| publishDate | 2015-10-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj-art-54614169a53848bb9bf045f9fa1e7ef32025-08-20T03:49:46ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2015-10-0172The effect of macroeconomic variables on non performance financing of Islamic Banks in IndonesiaLatifah Dian Iriani0Imamudin Yuliadi1Department of Economics, Universitas Muhammadiyah YogyakartaDepartment of Economics, Universitas Muhammadiyah Yogyakarta This research is going to discuss about the determinant macro variables and bank’s behavior determinant credit risk on Islamic rural bank in Indonesia. It could be seen on macro variables such as inflation, exchange rate, Jakarta I slamic index (JII) and money supply (M2), and bank’s behavior such as financing. Research methodology used at this study is Vector Error Correction Model (VECM). Following these procedures, it applies Unit Roots Test, Augmented Dickey Fuller Test, Lag Length Criteria Test, Correlation Matrix – Johansen Julius Co-integration Test, VECM Estimation, Impulse Response and Variance Decomposition Test. The result show that both bank behaviors and macroeconomic variables are significant affecting non-performing financing (NPF). The banking need more careful to manage internal and external factors that influence non-performing financing (NPF). https://103.220.113.119/JEP/article/view/4283Islamic BankImpulse ResponseFinancial Stabilitymacroeconomicinflation |
| spellingShingle | Latifah Dian Iriani Imamudin Yuliadi The effect of macroeconomic variables on non performance financing of Islamic Banks in Indonesia Economic Journal of Emerging Markets Islamic Bank Impulse Response Financial Stability macroeconomic inflation |
| title | The effect of macroeconomic variables on non performance financing of Islamic Banks in Indonesia |
| title_full | The effect of macroeconomic variables on non performance financing of Islamic Banks in Indonesia |
| title_fullStr | The effect of macroeconomic variables on non performance financing of Islamic Banks in Indonesia |
| title_full_unstemmed | The effect of macroeconomic variables on non performance financing of Islamic Banks in Indonesia |
| title_short | The effect of macroeconomic variables on non performance financing of Islamic Banks in Indonesia |
| title_sort | effect of macroeconomic variables on non performance financing of islamic banks in indonesia |
| topic | Islamic Bank Impulse Response Financial Stability macroeconomic inflation |
| url | https://103.220.113.119/JEP/article/view/4283 |
| work_keys_str_mv | AT latifahdianiriani theeffectofmacroeconomicvariablesonnonperformancefinancingofislamicbanksinindonesia AT imamudinyuliadi theeffectofmacroeconomicvariablesonnonperformancefinancingofislamicbanksinindonesia AT latifahdianiriani effectofmacroeconomicvariablesonnonperformancefinancingofislamicbanksinindonesia AT imamudinyuliadi effectofmacroeconomicvariablesonnonperformancefinancingofislamicbanksinindonesia |