The purpose of this paper is to determine the level of financial inclusion in OIC countries which operate Islamic Banking and the link between financial inclusion and the development of Islamic finance. This study investigates the role of Islamic finance to financial inclusion which included the development of Islamic financial and socio-economic variables as independent variable. Panel data regression has been used to estimate the relationship between the development of Islamic finance and financial inclusion. EGLS, Estimated Generalize Least Square, is conducted to reduce the autocorrelation among residual due to cross-sectional effect. Using Sharma Financial Inclusion Index, this study finds that the average Financial Inclusion Index, IFI, is 22.2 with the highest index is 56.7 for Kuwait and the lowest index is 2.8 for Sudan. Using the three non-standard Random Effect Model (REM) models, this research generates consistent and robust regression coefficients. This research found that there is a negative impact of development of Islamic finance on financial inclusion, even small. This indicates that the development of Islamic finance does not help much the public to increase access to the financial sector. On the other hand, financial inclusion is still heavily influenced by macroeconomic variables such as the level of unemployment and national income. Abstrak Tujuan penelitian ini adalah untuk mengukur tingkat inklusi keuangan di negara-negara anggota Organisasi Kerjasama Islam, OKI, yang mengoperasikan perbankan syariah serta hubungan antara inklusi keuangan dengan pengembangan keuangan Islam. Penelitian ini membahas peran keuangan Islam terhadap inklusi keuangan dengan memasukkan variable perkembangan keuangan Islam dan variabel ekonomi sosial sebagai variabel penjelas. Regresi data panel digunakan untuk mengestimasi hubungan antara pengembangan keuangan Islam dan inklusi keuangan. EGLS, Estimated Generalize Least Square, digunakan untuk mengurangi potensi adanya autokorelasi akibat adanya efek antar ruang (cross-section). Dengan merujuk indeks inklusi keuangan Sharma, studi ini menemukan bahwa indeksiInklusi keuangan rata-rata di negara-negara OKI adalah 22,2 dengan indeks tertinggi adalah 56,7 untuk Kuwait dan indeks terendah adalah 2,8 untuk Sudan. Dengan menggunakan tiga model non standar Random Effect Model (REM), riset ini menunjukkan hasil yang konsisten dan robust. Riset ini menemukan bahwa pengembangan keuangan Islam terhadap inklusi keuangan, cenderung memberikan kontribusi negatif meskipun kecil. Hal ini mengindikasikan bahwa pengembangan keuangan Islam tidak banyak membantu masyarakat untuk meningkatkan akses kepada sektor keuangan. Di sisi lain, inklusi keuangan masih banyak dipengaruhi oleh variable ekonomi makro seperti tingkat pengangguran dan pendapatan nasional.
This study aims to analyse the factors that influence Islamic commercial bank financing for the agricultural sector in Indonesia from January 2015 to April 2019. Methodology:Variables used in this study are Agricultural Financing, DPK, NPF, Inflation, Exchange Rates, SBIS, and IPI. The method used in this research is the VAR/VECM method with Impulse Response Function (IRF) analysis and Forecast Error Variance Decomposition (FEVD). Findings:The results show that the variables that significantly influence agricultural financing in the long-term are DPK, Exchange Rate, and IPI. Taking a closer detail, IPI variable has a positive effect, while the DPK and Exchange Rate have a negative effect on agricultural financing. Then NPF, inflation, and SBIS have no effect on agricultural financing in the short and long-term. Based on the results of FEVD, the variable that has the greatest contribution to agricultural financing is DPK compared to Exchange Rate and IPI.Practical applications: Islamic bank directors prioritize efforts to increase funding in order to encourage an increase in the portion of financing in the agricultural sector.Originality: This study examines the effect of financial and macroeconomic performance on mudharabah financing in the short and long term in Indonesia.
This study aims to analyze the contribution of risk-based financing. The financing risk in this study is measured by non-performance financing .The type of study used is quantitative research with an explanatory approach. The type of data used is secondary data collected by the documentation method. Data analysis using panel data regression analysis. Based on the results of studies that have been carried out, the report taken in this study is profit-sharing financing which has an influence on the risk of financing in Islamic banks in Indonesia. These results indicate that increased financing is based on principles that can reduce the risk of problems. From the results of the study, it is important for Islamic banking banks to take the right policy regarding the distribution of financing with the principle of profit-sharing (mudharabah and musyarakah). In financing with the profit-sharing principle that has a high risk, however, the criteria for syariah commercial banks to comply with the requirements set by the Financial Services Authority can prevent problematic risks.
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