Analysis of the Effects of Inflation, Exchange Rates, BI Rate, and Liquidity on Non-Performing Islamic Banking in Indonesia

Contenu principal de l'article

Muhammad Tho’in, Neli Hajar, Musta’an, Titik Purwanti

Résumé

The purpose of this research is to analyze the effect of the inflation, exchange rate, and BI Rate as a macroeconomic variable and the liquidity variable as an internal variable on problematic financing in Islamic banking in Indonesia. This research is a quantitative descriptive research using multiple linear regression analysis. The populations in this research are all published Islamic banking financial reports. The sample of this research is the financial statements of Islamic banking during the 2014-2018 periods. The results of the analysis and discussions that have been carried out show that inflation and BI Rate do not have an effect on problematic financing of Islamic banking in Indonesia. Meanwhile, exchange rate has a significant negative effect and liquidity has a significant positive effect on problematic financing of Islamic banks. Some conventional bank customers deliberately move their money to Islamic banks in case a conventional bank goes bankrupt when the rupiah exchange rate weakens against the US dollar. This has led to an increase in the amount of Third Party Funds entering Islamic banks. In problem financing, which is proxied by the NPF ratio, this ratio will decrease if the amount of non-performing financing remains, while the amount of financing disbursements increases.

Renseignements sur l'article

Rubrique
Articles