Indonesia Conference Directory

Corresponding Author
Agus Widarjono

Institutions
Department of economics, Universitas Islam Indonesia, Yogyakarta, Indonesia

Abstract
Islamic bank offers a distinct contract from a conventional bank. Instead of using fixed cost with interest rate, Islamic bank provides the contracts both with profit-and-loss sharing and non-profit-and-loss sharing systems. This present study analyzes whether Islamic rural bank (IRB) performs in Indonesia better than the conventional rural bank (CRB) as their competitors. IRBs financial performance is measured by two measures, namely financial stability (Z-score) and profitability (ROA). The data used is monthly data starting from 2009: M1-208: M12. The results report that the IRBs Z-Score is higher than CRBs Z-Score. This finding shows that the IRB is more resistant to failure than CRB. However, based on the ARDL model as a dynamic regression, the stability of the IRB is very vulnerable to changes in the CAR, output, and inflation compared to CRB. The IRBs profit level is lower than CRB profit. Bank characteristics influencing IRBs profits are bank size and CAR, while macro variables affecting IBRs profit are output and inflation.

Keywords
Islamic Rural Banking, Financial Stability, ARDL, Indonesia

Topic
Islamic Economics and Business

Link: https://ifory.id/abstract/B3ewvyMzKtUg

Corresponding Author
Mohammad Bekti Hendrie Anto

Institutions
Department of Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia

Abstract
Islamic banking as a financial intermediary is very vulnerable to bankruptcy. One measure of bankruptcy is non-performing financing (NFP). Indonesian Islamic bank consists of Islamic commercial bank and Islamic rural bank. The NPF level of Islamic rural banks is above the maximum threshold. This paper investigates the impact of bank characteristic variables such as assets, financing, CAR, and efficiency and macroeconomic variables such as national output and inflation on NPF. The results show that assets, CAR, and efficiency have a positive effect on NPF while financing has a negative effect on NPF. The domestic output has a negative effect on NFP and the inflation has a positive effect on the NPF. More interestingly, the effect of macro variables is asymmetric on NPF. An increase in output does not decrease the NPF but when a decrease in output raises the NPF. Whereas the inflation worsens the NPF compared to the deflation

Keywords
Non Performing Financing, Islamic rural bank, NARDL, Indonesia

Topic
Islamic Economics and Business

Link: https://ifory.id/abstract/V8yqnTECFWUm

Corresponding Author
Sri Maulida

Institutions
Universitas Lambung Mangkurat Banjarmasin

Abstract
The growth of Islamic banking in Indonesia to show positive results, one of which related to finance growth. However, over time, financial technology is needed at this time so that people understand about finance and banking. The aims of this research is to find out which variables are most influential in driving financial inclusion, blockchain and crowdfunding. The analytical method used is Vector Autoregression First Difference (VAR-FD) with innovation accounting in the form of Impulse Response Function (IRF) and Forecasting Error Variance Decomposition (FEVD) from the aggregated data statistics of Shariah banking in Indonesia. The results of this study indicate that The most influential variable on increasing the number of financing accounts in crowfunding is Murabah, The most influential variable in increasing the number of DPK accounts in blokchain is Sukuk. The influence of Murabahah and Sukuk is very large in forming Inclusive growth.

Keywords
Economics, Blokchain, Crowdfunding, Monetary, Shariah bank; Vector Autoregression First Difference (VAR-FD).

Topic
Islamic Economics and Business

Link: https://ifory.id/abstract/bQpgBNetzEwG