Islamic Banking Financing and Economic Growth: An Empirical Study From Indonesia

Iryanto, Muhammad; Inat, Fathy; Fadly, S

doi:10.30984/tjebi.v5i2.1316

Cited by 3 publications

(3 citation statements)

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“…Cryptocurrency, gold standard, and assets-based monetary systems reduce global income and wealth inequality, while traditional fiat money contributes positively but also fluctuates (Othman et al, 2020). Islamic banking intermediation empirically contributes directly to economic growth (Iryanto et al, 2020). Islamic banks' performance has contributed to economic growth mainly during the period right after the financial crisis (Bendriouch et al, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Asset-Based Money Systems in a Global Context: Implications for Social Inclusion and Economic Development

Rehana Yamin,

Noman Arshed,

Ejaz Aslam

2024

IJMRES

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Fiat money based financial system has disturbed the balance between household demand and firm supply. Further, government monetary intervention to curb inflationary demand is hurting production via the cost of capital and disturbing the functionality of the financial system in terms of capital market misallocation. These aspects are trickling down to cause social disturbance in the economy. Corresponding to it, the gold standard or at least assets-based money promotes social inclusion, empowers marginalized communities, and addresses socio-economic challenges by using tangible assets as a monetary system. The study explores assets-based money’s theoretical foundations, distinguishing it from traditional debt-based models and its potential benefits on social inclusion. It analyzes potential benefits, challenges, and limitations in implementing assets-based money systems. Several empirical studies explored debit cases of Islamic and conventional finance sectors, but this study examines the high power money and social inclusion in the economy. For this determination, the quantitative research approach consisted of selected 143 countries panel data of conventional and Islamic financial statements from 1960-2022. The model contains regression estimates, descriptive analysis, and correlation coefficient analysis. The assets-based money boosts living standards and positively impacts poverty reduction. This money reduces the inflationary effects of monetary expansion, hurting the purchasing power of low-income groups. Further, it is expected to have a growth-promoting effect via risk sharing and resource distribution. Assets-based money can support economic growth, financial stability, and inclusive development through a well-designed implementation strategy, but success depends on thorough research and analysis.

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Section: Literature Reviewmentioning

confidence: 99%

Asset-Based Money Systems in a Global Context: Implications for Social Inclusion and Economic Development

Rehana Yamin,

Noman Arshed,

Ejaz Aslam

2024

IJMRES

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“…According to Iryanto et al, (2020), economists generally think that the role of a bank intermediary is analogous to that of a heart, whose function is to pump blood throughout the body. When the banking industry is strong, the movement of cash to the real sector will support the development of permanent investment, one of the key conditions for economic development.…”

Section: Introduction 1research Backgroundmentioning

confidence: 99%

“…The Islamic banking industry in Indonesia shows strong growth in the distribution of financing provided to the public and business actors. Studies from Iryanto et al (2020), Anwar et al (2020), Prastowo (2018), Terminanto & Rama (2017), Yolanda et al (2021), Zirek et al (2016), andBsoukhatem &Ben Moussa (2018) reveal that Islamic banking institutions and economic development have a favorable and noteworthy correlation. The increase in assets, external source of funds, investment, and funding through sharia-compilant banks has encouraged the achievement of economic growth.…”

Section: Introduction 1research Backgroundmentioning

confidence: 99%

The Influence Of Msmes, Inflation, And Sharia Bank Finance On Economic Growth

Saputra,

Zulpahmi,

Fitriyanto

2023

JIEI

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Economic growth is important to study considering that each region will always try to increase its economic target. This study aims to analyze regional economic growth in West Java with the predictor variables of the number of MSMEs, inflation, and Islamic bank financing. Using secondary data for the 2016–2021 period obtained from the Central Bureau of Statistics, the Services and Finance Authority, and the Office of Cooperatives and UMKM of West Java Province, Using seven cities in West Java as a sample in the study and multiple linear regression as an analytical tool The findings revealed that, for the 2016–2021 period, the number of MSMEs, inflation, and Islamic bank financing had a significant positive effect on West Java regional economic growth. Furthermore, simultaneously, the three independent variables significantly affect the regional economic growth of West Java. West Java's regional economic growth variable of 95.28% is influenced by the independent variables of the number of MSMEs, inflation, and Islamic bank financing, while 4.72% is influenced by other variables. In order to increase economic growth, the government's role is very important in empowering MSMEs, maintaining inflation rate stability, and increasing the portion of sharia financing by Islamic banks.

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Viewpoint: Physician as a Clinician, Researcher, and Academician

Cody¹,

Rosales²

2021

JMUST

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The daily work life of physicians who function as clinicians, researchers, and academicians is focused on improving public health and patient outcomes in three usually compartmentalized settings: clinics, classrooms, and centers for research. In these settings, physicians are addressing patients’ medical concerns based on evidence, and at the same time, considering if new information could lead to research and discovery for better patient outcomes. The physician then proceeds to mentor, teach, and train medical students in quality evidence-based clinical practice and the conduct of scientific research. The importance of operationally blending these three disciplines with research as a common thread is not only a big challenge for these physicians but also an opportunity to innovate for better public health.

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Islamic Banking Financing and Economic Growth: An Empirical Study From Indonesia

Cited by 3 publications

References 11 publications

Asset-Based Money Systems in a Global Context: Implications for Social Inclusion and Economic Development

Asset-Based Money Systems in a Global Context: Implications for Social Inclusion and Economic Development

The Influence Of Msmes, Inflation, And Sharia Bank Finance On Economic Growth

Viewpoint: Physician as a Clinician, Researcher, and Academician

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