Abstract
This study aims to determine the effect of macroeconomic factors on Islamic bank savings funds in Indonesia. Macroeconomic variables used; economic growth, government debt, exchange rates, trade balance, money supply (M2), and foreign direct investment. Macroeconomic data is obtained from the publication of the Central Statistics Agency (BPS). Depositors’ fund data is obtained from the Financial Services Authority (OJK). The population consists of all Islamic commercial banks and Islamic business units. The sampling technique used total sampling, and data analysis was performed using multiple linear regression. Observation data from January 2005 to December 2019 used quarterly data. The results show that government debt and money supply (M2) positively and significantly affect depositors of Islamic banks in Indonesia. In contrast, economic growth, exchange rates, trade balance, and foreign investment do not significantly affect Islamic bank deposit funds in Indonesia. Keywords: Macroeconomic Factors, Depositor Funds, Sharia BankJEL Classification: C3, E00, Z00
Highlights
This reserve is known as 4% Macroprudential Liquidity Support (PLM) for conventional commercial banks and Islamic banks based on Bank Indonesia Regulation Number 20/4 / PBI / 2018
The lowest depositor funds occurred in the first quarter of 2005, and the highest depositor funds occurred in the fourth quarter of 2019
The lowest Indonesian Rupiah (IDR) exchange rate against United States Dollar (USD) occurred in the second quarter of 2011, and the highest IDR exchange rate against USD happened in the third quarter of 2018
Summary
Funding from third parties or depositors’ funds is a form of customer confidence in a bank. The higher the growth of third-party funds at a bank, it has built a positive image in the public’s eyes, increasing confidence in the bank. Third-party funding or depositing funds is an important factor because the central bank has established a minimum liquidity reserve. This reserve is known as 4% Macroprudential Liquidity Support (PLM) for conventional commercial banks and Islamic banks based on Bank Indonesia Regulation Number 20/4 / PBI / 2018. Maximizing third-party funds is very important in increasing Islamic banks’ profitability (Fitri, 2016).
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