The Influence of Bank Health on Third Party Fundraising with Inflation as Intervening Variable at Sharia Commercial Banks in indonesia

Saiyid Syekh,Ali Akbar

doi:10.38035/dijefa.v2i1.791

Abstract

This research is to know the effect of Bank Health partially and simultaneously on Inflation, the effect of Bank Health partially and simultaneously on Third Party Fundraising, the effect of Inflation on Third Party Fundraising and the effect of Bank Health partially and simultaneously on Third Party Fundraising through Inflation. The population of this research amount of was 14 Sharia Banks in Indonesia for the period 2014 - 2019 with sample amount of 8 Sharia Banks. The method used is Path Analysis by using SPSS program or software with version 22. The results showed that partially the Non Performing Financing (NPF) has negative and insignificant effect on Inflation, Good Corporate Governance (GCG) has positive and insignificant effect on Inflation, Net Rewards has positive and significant effect on Inflation and Capital Adequacy Ratio (CAR) has negative and significant effect on Inflation, while simultaneously Bank Health have no significant effect on Inflation. NPF has positive and significant effect on Third Party Fundraising, GCG has negative and insignificant effect on Third Party Fundraising, Net Rewards has positive and insignificant effect on Third Party Fundraising and CAR has negative and significant effect on Third Party Fundraising, while simultaneously Bank Health have significant effect on Third Party Fundraising. Inflation has negative and insignificant effect on Third Party Fundraising. Partially NPF, GCG, Net Rewards and CAR, indirectly has no significant effect on Third Party Fundraising through Inflation, while simultaneously Bank Health indirectly have no significant effect on Third Party Fundraising through Inflation.

Highlights

The results showed that partially the Non Performing Financing (NPF) has negative and insignificant effect on Inflation, Good Corporate Governance (GCG) has positive and insignificant effect on Inflation, Net Rewards has positive and significant effect on Inflation and Capital Adequacy Ratio (CAR) has negative and significant effect on Inflation, while simultaneously Bank Health have no significant effect on Inflation
NPF, GCG, Net Rewards and CAR, indirectly has no significant effect on Third Party Fundraising through Inflation, while simultaneously Bank Health indirectly have no significant effect on Third Party Fundraising through Inflation
Financing (NPF) is partially negative and insignificant effect on Inflation, where from the partial test result (t test) it is known that tcount value is less than the ttable value and the significance value is greater than 0.05

Summary

Introduction

The success of a banking system can be seen from its performance in allocating the sources of funds collected to distribute it to parties who need these funds (the bank functions as intermediary). Later this success is expected to increase a country's economic growth. The existence of differences between conventional and sharia banking systems is considered by many to be an advancement of the banking world in Indonesia, with the two banking systems making it easier for people to choose which banking system is considered the best rather than with just one banking system. On the other side this will be task in itself for Bank of Indonesia and the Financial Services Authority which must separate laws, rules and policies between conventional commercial banks and sharia commercial banks, this separation is carried out in relation to the financial system used by these two types of banking is very contradictory, for example the conventional banking system uses an interest system while the sharia banking system using profit sharing system (profit loss sharing) (Chapra, 1990)

Methods

Results

Conclusion