Independency Sharia Banks Against Conventional Banks "Analysis of Mudharabah Deposits on Conventional Bank interest rate" Period January 2010 – November 2018
Isbandini Veterina
a). STIE Indonesia Banking School
Jl. Kemang Raya no 35, Jakarta Selatan, DKI Jakarta, Indonesia
b). isbandini.veterina[at]ibs.ac.id
Abstract
The country that embraces dual banking system has always been the independence issue of Sharia banks over conventional banks. The determination of the outcome-share system, allegedly impure, but still refers to the conventional bank interest rates. In fact, theoretically there is a fundamental difference between sharia banks and consional banks. Sharia bank uses profit loss sharing system, conventional bank using interest rate. This research is conducted in order to test the independence of Sharia banks over conventional banks. This study refers to research that has been done by Chong and Liu (2009). The banking product used is the interest rate of conventional bank deposits and the rate for the result of Mudharabah bank Sharia deposits in Indonesia. Granger Causality Test is used to test whether a conventional bank deposit interest rate affects the rate for the results of Mudharabah Bank Sharia deposits, or vice versa. Results of this study showed that the interest rate of conventional bank deposits did not affect the rate for the results of Mudharabah Bank Sharia deposits. Similarly, the rate for the results of Mudharabah Syariah Bank deposits does not affect the interest rates of conventional bank deposits
Keywords: interest rate, profit loss sharing, Granger Causality
Topic: Manajemen Keuangan