BANKING MODEL AND MONETARY TRANSMISSION MECHANISM IN INDONESIA: ARE ISLAMIC BANKS MORE EFFECTIVE?

Economic growth, both global and national, is slowing down, prompting monetary authorities to issue effective monetary policies through credit lines to encourage economic growth. In the dual banking system where there are Islamic banks and conventional banks, it is a challenge for the monetary auth...

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Main Authors: Ilhamdi Ilhamdi, Luqman Luqman, Jati Kusuma Ali
Format: Article
Language:Arabic
Published: Institut Agama Islam Negeri Syaikh Abdurrahman Siddik Bangka Belitung 2025-05-01
Series:Asy Syar'iyyah: Jurnal Ilmu Syariah dan Perbankan Islam
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Online Access:https://jurnal.lp2msasbabel.ac.id/index.php/asy/article/view/5074
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author Ilhamdi Ilhamdi
Luqman Luqman
Jati Kusuma Ali
author_facet Ilhamdi Ilhamdi
Luqman Luqman
Jati Kusuma Ali
author_sort Ilhamdi Ilhamdi
collection DOAJ
description Economic growth, both global and national, is slowing down, prompting monetary authorities to issue effective monetary policies through credit lines to encourage economic growth. In the dual banking system where there are Islamic banks and conventional banks, it is a challenge for the monetary authorities to see the effectiveness of the two banks in transmitting monetary policy. To find out the difference in effectiveness levels, the researcher used quarterly data from Bank Indonesia interest rate variables, gross domestic product (GDP), Islamic bank financing, and conventional bank loans for the period 2014 to 2024. Using VAR-ECM analysis, it was found that Islamic banks have a lower response than conventional banks in transmitting monetary policy through credit channel. In addition, Syrian banks also have lower effectiveness than conventional banks in encouraging economic growth in Indonesia.
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issn 2089-7227
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language Arabic
publishDate 2025-05-01
publisher Institut Agama Islam Negeri Syaikh Abdurrahman Siddik Bangka Belitung
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series Asy Syar'iyyah: Jurnal Ilmu Syariah dan Perbankan Islam
spelling doaj-art-717261e284554f3e8a2c02bb9365767d2025-08-20T02:27:16ZaraInstitut Agama Islam Negeri Syaikh Abdurrahman Siddik Bangka BelitungAsy Syar'iyyah: Jurnal Ilmu Syariah dan Perbankan Islam2089-72272598-85222025-05-019210.32923/asy.v9i2.5074BANKING MODEL AND MONETARY TRANSMISSION MECHANISM IN INDONESIA: ARE ISLAMIC BANKS MORE EFFECTIVE?Ilhamdi Ilhamdi0Luqman Luqman1Jati Kusuma Ali2IAIN PontianakIAIN PontianakUniversiti Teknologi Mara Economic growth, both global and national, is slowing down, prompting monetary authorities to issue effective monetary policies through credit lines to encourage economic growth. In the dual banking system where there are Islamic banks and conventional banks, it is a challenge for the monetary authorities to see the effectiveness of the two banks in transmitting monetary policy. To find out the difference in effectiveness levels, the researcher used quarterly data from Bank Indonesia interest rate variables, gross domestic product (GDP), Islamic bank financing, and conventional bank loans for the period 2014 to 2024. Using VAR-ECM analysis, it was found that Islamic banks have a lower response than conventional banks in transmitting monetary policy through credit channel. In addition, Syrian banks also have lower effectiveness than conventional banks in encouraging economic growth in Indonesia. https://jurnal.lp2msasbabel.ac.id/index.php/asy/article/view/5074MonetaryBankingTransmission
spellingShingle Ilhamdi Ilhamdi
Luqman Luqman
Jati Kusuma Ali
BANKING MODEL AND MONETARY TRANSMISSION MECHANISM IN INDONESIA: ARE ISLAMIC BANKS MORE EFFECTIVE?
Asy Syar'iyyah: Jurnal Ilmu Syariah dan Perbankan Islam
Monetary
Banking
Transmission
title BANKING MODEL AND MONETARY TRANSMISSION MECHANISM IN INDONESIA: ARE ISLAMIC BANKS MORE EFFECTIVE?
title_full BANKING MODEL AND MONETARY TRANSMISSION MECHANISM IN INDONESIA: ARE ISLAMIC BANKS MORE EFFECTIVE?
title_fullStr BANKING MODEL AND MONETARY TRANSMISSION MECHANISM IN INDONESIA: ARE ISLAMIC BANKS MORE EFFECTIVE?
title_full_unstemmed BANKING MODEL AND MONETARY TRANSMISSION MECHANISM IN INDONESIA: ARE ISLAMIC BANKS MORE EFFECTIVE?
title_short BANKING MODEL AND MONETARY TRANSMISSION MECHANISM IN INDONESIA: ARE ISLAMIC BANKS MORE EFFECTIVE?
title_sort banking model and monetary transmission mechanism in indonesia are islamic banks more effective
topic Monetary
Banking
Transmission
url https://jurnal.lp2msasbabel.ac.id/index.php/asy/article/view/5074
work_keys_str_mv AT ilhamdiilhamdi bankingmodelandmonetarytransmissionmechanisminindonesiaareislamicbanksmoreeffective
AT luqmanluqman bankingmodelandmonetarytransmissionmechanisminindonesiaareislamicbanksmoreeffective
AT jatikusumaali bankingmodelandmonetarytransmissionmechanisminindonesiaareislamicbanksmoreeffective