Analysis of the Influence of Islamic Rural Banks (BPRS) on Regional Economies in Java
Mauizhotul Hasanah (a*), Siti Zulaikha (b)
(a) Economic and Business of Faculty, Airlangga University, hasanahidzoh[at]gmail.com*
(b) Economic and Business of Faculty, Airlangga University,
siti-z[at]feb.unair.ac.id
Abstract
The financial sector in a region can spur the pace of economic movements, especially with the contribution of banks in the micro sector as an intermediary tool in channeling funds to productive investments that encourage the real sector, especially in the micro sector, which will produce aggregate output. The purpose of this study is to analyze the extent of the Islamic Peoples Financing Bank (BPRS), which is an Islamic microfinance institution for the economy on the island of Java. This study uses secondary data during the period January 2016 to December 2018. This study uses the Ordinary Least Square Data Panel method. Empirical results show that partially of Total Assets does not have a significant positive effect on GDRB. While the total financing, Third Party Funds (TPF), the number of BPRS partially has a positive and significant effect on GDRB. In addition, simultaneously the overall independent variables together have a significantly positive effect on GDRB
Keywords: BPRS, Regional Economy, Java Island
Topic: Islamic Micro finance