The Effect of BI Rate, Exchange Rate, Inflation and Third Party Fund (DPK) on Credit Distribution and Its Impact on Non Performing Loan (NPL) on XYZ Commercial Segment Bank

Sinaga, Jerimieus S; Muda, Iskandar; Silalahi, Amlys Syahputra

doi:10.13189/ujaf.2020.080301

Cited by 14 publications

(15 citation statements)

References 7 publications

(7 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The world financial community (represented by the relevant associations) has been actively working in the field of standardization and unification of key aspects of credit and investment activities. In particular, in October 1999 at a meeting of the higher coordination body of the Confederations of Financial Analysts, the International Council of Investment Associations (ICI), which was attended by representatives of associations of Asia (ASAF), Europe (EFFAS), South America (IASSA), as well as the Association for Investment Management and Research (AIMR) , adopted decision to implement the Global Investment Standards in Europe (Global Investment Performance Standards, GIPS) [44][45][46].…”

Section: Resultsmentioning

confidence: 99%

Credit-Investment Activity of Banks of the Ukraine: Financial Globalization, Risks, Stabilization

Трусова¹,

Melnyk²,

Shіlo³

et al. 2021

ujaf

View full text Add to dashboard Cite

Today the problem of managing credit and investment risk in the bank in the context of financial globalization remains one of the most relevant problems. At the same time, science may not yet explain the answers to some questions and the banker needs to solve them in practice. Therefore, the construction of a comprehensive system of credit and investment risk management in banks is one of the main components of security effective lending activities of banks. The article considers the features of credit and investment activities of banks in the interbank market in the context of financial globalization. The article reveals that the main economic function of Ukrainian banks in the period of accession to the EU is the credit and investment activity of their clients. State of the loan and investment portfolio and dynamics of loans were analyzed. The model and methods of the integrated stabilizer of credit and investment activity of the bank on the interbank market are developed. The authors proposed a list of methods and actions that unify threats, identify risks and improve the credit and innovation activities of the bank in the period of globalization for countries that are in the process of forming the banking infrastructure.

show abstract

Section: Resultsmentioning

confidence: 99%

Credit-Investment Activity of Banks of the Ukraine: Financial Globalization, Risks, Stabilization

Трусова¹,

Melnyk²,

Shіlo³

et al. 2021

ujaf

View full text Add to dashboard Cite

show abstract

“…If the BI rate is lowered, the bank will respond by lowering the credit interest rate in order to reduce the cost of funds borne by the bank from the savings interest rate. The monetary policy adopted by Bank Indonesia is determined by the determination of the ideal interest rate, namely one that can balance the benefits of interest rates between the banking sector and the public as customers, including parties from the business sector [13].…”

Section: Discussionmentioning

confidence: 99%

Interest Rates and Inflation as Determining Factors of Saving in Central Sulawesi Banks

Jaya¹,

Tolla²,

Syatir³

et al. 2021

ujaf

View full text Add to dashboard Cite

This study aims to analyze the effect of the Central Bank, which is in Indonesia presented by Bank Indonesia (BI) Rate and inflation rate on the savings rate at commercial banks in Central Sulawesi by using the analysis tools of autoregressive conditional heteroscedasticity (ARCH) and generalized autoregressive conditional heteroscedasticity (GARCH). The results of the analysis show that the BI Rate and inflation have significant effects on saving rate at commercial banks in Central Sulawesi. The importance of being a source of investment funds to support development activities can be a consideration for the government to formulate a policy for allocating investment from these savings funds for productive sectors. Practically, it is hoped that the distribution of savings through investment activities can encourage economic growth and increase economic development in Central Sulawesi.

show abstract

“…Several reasons can be justified. First, it seems that 838 The Currency Exposure and Syariah Compliant Status under Different Time Domains: Insights from Maximal Overlap Discrete Wavelet Transformation (MODWT) Analysis exchange risk factors are closely dependent on the nature of business profiles, price elasticity, trade activities, the extent of hedging practices and market conditons (supply and demand) (Sinaga et al [53]). Secondly, there is no basis to expect different exchange risk management programs between Syariah compliant and non-Syariah compliant firms.…”

Section: Discussionmentioning

confidence: 99%

The Currency Exposure and Syariah Compliant Status under Different Time Domains: Insights from Maximal Overlap Discrete Wavelet Transformation (MODWT) Analysis

Wahab¹,

Zainudin²,

Mohamad³

et al. 2021

ujaf

View full text Add to dashboard Cite

The rise of the Islamic capital market in the emerging economy of Malaysia over the past few decades motivates us to investigate the impact of the Syariah compliant status on the level of exchange rate exposure. The Syariah compliant status implies that a company should use a minimal level of debt as capital to finance its operations. Given this, it is hypothesized that Syariah compliant firms should exhibit lower levels of exchange rate exposure than their counterparts, supported by the strong theoretical connection between interest rate and exchange rate. In terms of specification, previous efforts in pricing exchange risk failed to capture the true size of exposure due to the use of single time domain in traditional model. To cater the bias in estimation, this study intends to calculate multi-horizon exchange rate exposure based on maximal overlap discrete wavelet transformation to decompose single series into multiple time domains. The financial risk analysis involves 30 listed non-financial individual stocks in Malaysia having different Syariah compliant status from November 2013 until May 2018. As a result, the study finds no significant difference in currency exposure between Syariah compliant and non-Syariah compliant stocks. Secondly, it is found that the extent of currency exposure and the percentage of exposed firms exhibit non-homogenous trend across different time scales where large amount of exposure is concentrated at higher scale. From policy implications, the study suggests that Syariah compliant firms and non-Syariah compliant firms share the same exchange risk profile where exchange risk management routine is expected to be identical for both groups. Besides, the enhanced level of exposure at higher scale requires vigorous financial risk hedging strategies especially within widened investment interval.

show abstract

The Effect of BI Rate, Exchange Rate, Inflation and Third Party Fund (DPK) on Credit Distribution and Its Impact on Non Performing Loan (NPL) on XYZ Commercial Segment Bank

Cited by 14 publications

References 7 publications

Credit-Investment Activity of Banks of the Ukraine: Financial Globalization, Risks, Stabilization

Credit-Investment Activity of Banks of the Ukraine: Financial Globalization, Risks, Stabilization

Interest Rates and Inflation as Determining Factors of Saving in Central Sulawesi Banks

The Currency Exposure and Syariah Compliant Status under Different Time Domains: Insights from Maximal Overlap Discrete Wavelet Transformation (MODWT) Analysis

Contact Info

Product

Resources

About