Banking Disintermediation and Its Implication for Monetary Policy: The Case of Indonesia

Alamsyah, Halim; Zulverdi, Doddy; Gunadi, Iman; Idris, Rendra Z.; Pramono, Bambang

doi:10.21098/bemp.v7i4.122

Cited by 8 publications

(7 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Placement of excess liquidity in the Central Bank or Bank Indonesia is an obligation for banks include Islamic bank (Alamsyah et al, 2005;Arndt, 1979 Furthermore, the placement of funds in Bank Indonesia instruments is a provision of regulators so that the amount of investment is inflexible or binding. This is because the government uses the Bank Indonesia securities instruments in regulating the circulation of money in the community.…”

Section: The Influence Of Investment In the Bank Indonesia Instrumentmentioning

confidence: 99%

The Contribution of Sukuk Placement and Securities to The Islamic Bank Profitability

Nugroho

Badawi

Hidayah

2020

TIFBR

View full text Add to dashboard Cite

The purpose of this study was to determine the effect of the placement of Islamic bank funds on government assets (Government-Sukuk), the placement of Islamic bank funds at the central bank, and the placement of Islamic bank funds on non-government assets (Corporate-Sukuk) on the return on asset (ROA) of Islamic banks. The method is quantitative with a multiple regression statistical model and the Stata version 13 as the statistical software. Based on data processing on research variables, it was found that investment in Government Sukuk has a negative and significant effect on return on assets. Furthermore, the variable investment in securities in Bank Indonesia instruments has a positive and significant impact on the return on asset (ROA). Nevertheless, investment in Sukuk corporates has a positive effect and not significant to the return on asset. Therefore, Islamic Banks must be able to select the investment options in placing their excess funds to get optimal returns which aims to maintain bank reputation and performance. Thus, the impact is the public trust increases with the performances of the Islamic Bank.

show abstract

Section: The Influence Of Investment In the Bank Indonesia Instrumentmentioning

confidence: 99%

The Contribution of Sukuk Placement and Securities to The Islamic Bank Profitability

Nugroho

Badawi

Hidayah

2020

TIFBR

View full text Add to dashboard Cite

show abstract

“…The term NPF (nonperforming financing) and FDR (financing to deposit ratio) are used in Islamic banking, while in conventional banking, the terms are known as NPL (nonperforming loans) and LDR (loan to deposit ratio). (Alamsyah, et al 2005:. Haque, et al 2009Ebrahim, M.S & Joo, T. (2001)).…”

Section: Introductionmentioning

confidence: 99%

The effect of non-performing financing and financing to deposit ratio on Islamic banks financing in Indonesia

Permataningayu

Mahdaria

2019

AJIM

View full text Add to dashboard Cite

This study aims to analyze the effect of NPF (non-performing financing) and FDR (financing to deposit ratio) to the volume of financing in Indonesia Islamic Banks with third-party funds as a mediating variable. This research is a quantitative research. Methodology:The populations in this study are Bank Indonesia Publication Reports and other references from journals, research, internet, etc. Sampling was done by purposive sampling method Secondary data collection method used is documentation method. Data analysis techniques used in this research is the technique of mediation regression analysis, which uses multiple causal step method. Findings :The results show that NPF (non-performing financing) does not affect the volume of financing in Islamic commercial banks in Indonesia, FDR (financing to deposit ratio) does not affect the volume of financing in Islamic commercial banks in Indonesia, NPF (non-performing financing) has no effect on DPK (third party funds), FDR (financing to deposit ratio) has no effect on DPK (third party funds), DPK (third party funds) has a positive effect on the volume of financing in Islamic commercial banks in Indonesia, DPK partially mediates the effect of NPF (non-performing financing) to the volume of financing Islamic banks in Indonesia, DPK perfectly mediates the effect of FDR (financing to deposit ratio) to the volume of financing Islamic banks in Indonesia.Originality/Contribution: This is the first study to used Islamic banks selected for this research are Bank Muamalat Indonesia, Bank Syariah Mandiri, Bank Syariah Mega Indonesia and the data are taken from the tri-monthly report.

show abstract

“…Understanding the credit behavior of banking sector in Indonesia is important since banks dominate the financial industry by 86 per cent in terms of assets. In addition, credit from banking sector is the major source of lending for business and households (Alamsyah, 2004). Yet, the low disbursement of loan in Indonesian banking has highly signalled banks' lack of intermediary role to the economy.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Credit Market in Indonesian Banking Industry

2019

JEM

View full text Add to dashboard Cite

This study aims to find out determinants of conventional banks' credit supply and demand in Indonesia between 2005 and 2014, a period after recovery from financial crisis in 1997/1998. Some literatures suggest that demand and supply of credit are determined by the rates of credit and bonds. This study contribute to the literature by considering the role of prudential policy, market structure and banks ownership on supply and demand for credits. By using the bank level yearly data, the Seemingly Unrelated Regression model is employed to manage simultaneity between demand and supply of credit. The empirical findings support the literature that in the case of Indonesian banking, demand and supply of credit are determined by the rates of lending yields of bonds and the rates of Bank Indonesia Certificate (Sertifikat Bank Indonesia/SBI). This study also reveals that prudential regulation has even dampened the banks' capability to supply lending. By implication, banks' higher lending capacity could improve their supply of credits. Hence, larger banks are proved to be able to supply more credits than the smaller ones; whereas the demands for credit remain to be substantially determined by the macroeconomic conditions.

show abstract

Banking Disintermediation and Its Implication for Monetary Policy: The Case of Indonesia

Cited by 8 publications

References 11 publications

The Contribution of Sukuk Placement and Securities to The Islamic Bank Profitability

The Contribution of Sukuk Placement and Securities to The Islamic Bank Profitability

The effect of non-performing financing and financing to deposit ratio on Islamic banks financing in Indonesia

Determinants of Credit Market in Indonesian Banking Industry

Contact Info

Product

Resources

About