The payment system is an important component in the economy especially to ensure the implementation of payment transactions made by the public and the business world. In addition, the payment system also plays an important role in supporting financial system stability and implementation of monetary policy. Along with rapid technological developments, patterns and payment systems in economic transactions are constantly changing. Technological advances in the payment instruments shift the role of cash as a means of payment in the form of more efficient and economical non-cash payments. Non-cash payment instruments used in this study are card-based payment instruments (APMK) and electronic money (e-money). The aim of this study is to examine the effect of non-cash payment instruments development on money supply (M1), velocity of money, inflation, interest rate, and financial system stability. A set of secondary data are assessed through official website of Bank Indonesia from year 2009-2017. Multiple regression analysis are employed to elaborate the results. The result showed that e-money and credit card transactions have a significant positive effect on M1, e-money transactions have a significant negative effect on interest rates, and credit card transactions have a significant positive effect on interest rates.
This study aims to analyze the determinant of banking profitability, which is influenced by internal factors and external factors. This study focus on the impact of internal factors (CAR, NPL, and LDR) and external factors (BI rate and money supply) on bank profitability which is proxied by Return on Assets (ROA). The sample used bank category BUKU 4, with period from 2008 to 2017. The method used in this study is Fixed Effect Method (FEM). The empirical result shows that internal factors (NPL and LDR) have a significant effect on ROA, while CAR had no significant effect on ROA. External factors, BI rate and money supply also have a significant effect on ROA.
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