Research Paper
Year: 2021 | Month: June | Volume: 8 | Issue: 6 | Pages: 180-192
DOI: https://doi.org/10.52403/ijrr.20210622
Analysis of the Effect of Exchange Value, Inflation, Product Sharing and Gross Domestic Products on Development Sharia Banking Assets in Indonesia
Muhammad Arif1, HB. Tarmizi SU2, M. Syafi’i3
1Posgraduate Students Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
2,3Postgraduate Lecturer Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
Corresponding Author: Muhammad Arif
ABSTRACT
Islamic banks have had a significant development in assets, where during the last ten years the assets of Islamic banks reached 524 trillion rupiah in 2019. However, although the number of assets tends to increase, the percentage of Islamic bank assets grew slowly from 2016 to 2019. It was recorded that the growth of Islamic bank assets in 2016 grew by 22.10% (yoy) and finally in 2019 it grew by 9.93% (yoy), in line with the slowdown in financing channeled by Islamic banks. Banks in their operational activities cannot be separated from the influence of economic conditions. In this study, using analysis from outside the company, namely by using analysis of the macroeconomic environment. Macroeconomic variables used are the exchange rate, inflation, and Gross Domestic Product (GDP), where these three factors are the impact of the global financial crisis in 2008, and greatly affect the condition of the Indonesian economy. As well as the internal factors of the bank itself, namely profit sharing. The purpose of this study is to determine how much influence the exchange rate, inflation, profit sharing, and GDP both partially and simultaneously affect the development of Islamic bank assets in Indonesia. This type of research is quantitative research with panel data. This study uses panel data regression analysis techniques, namely using data combining cross section and time series, where this research is carried out using the common effect, fixed effect and random effect model specification test using the Chow test and the Hausman test. The population and sample of this study are the 10th quarterly financial reports of Islamic commercial banks in Indonesia using purposive sampling technique. The model chosen in this study is the Fixed Effect Model (FEM). The results showed that partially the exchange rate and inflation variables had a positive but insignificant effect on the development of Islamic bank assets, while the profit sharing variables and gross domestic product had a positive and significant effect on the development of Islamic bank assets. While simultaneously the exchange rate, GDP, inflation and profit sharing variables have a positive and significant effect on the development of Islamic bank assets.
Keywords: Exchange Rate, Inflation, Profit Sharing, GDP and Asset Development.
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