Macroprudential Policy on Sharia Banking Financing: The Indonesian Experience
The locus of macroprudential policy persuading banks has recently attracted significant attention for such research. Whether and to what extent macroprudential policies established by Bank Indonesia against sharia banks have not researched yet in previous empirical studies. Gathering data during 2008-2016, this article examines the impact of macroprudential policy on credit risk-taking by sharia banks in Indonesia. This research approach uses dynamic panel data analysis technique to investigate the relationship between risk-taking of sharia bank credit and macroprudential policy for a bank in Indonesia good sharia banking. This research shows that there is the influence of Bank Indonesia's macroprudential policy toward murabaha financing in Indonesia.
Keywords: macroprudential policy, credit risk, sharia bank
Abdul-Rahman, Y. (2014). The Art of RF (Riba-Free) Islamic Banking and Finance: Tools and Techniques for Community-Based Banking. John Wiley & Sons.
Abedifar, P., Molyneux, P., & Tarazi, A. (2013). Risk in islamic banking. Review of Finance, 17(6), 2035–2096. https://doi.org/10.1093/rof/rfs041.
Agustin, H. (2016). Financial performance Islamic banking unit in Indonesia: A comparative study private banks and regional development banks. International Journal of Economic Research, 13(4), 1399–1409.
Ahmad, A. Y. (2017). The role of money in Financial Instability and possibilities of reformation within an Islamic financial system. Journal of King Abdulaziz University, Islamic Economics, 30(3), 187–208. https://doi.org/10.4197/Islec.30-3.7.
Aliyu, S., Hassan, M. K., Mohd Yusof, R., & Naiimi, N. (2017). Islamic Banking Sustainability: A Review of Literature and Directions for Future Research. Emerging Markets Finance and Trade, 53(2), 440–470. https://doi.org/10.1080/1540496X.2016.1262761.
Aliyu, S., Yusof, R. M., & Naiimi, N. (2017). The role of moral transaction mode for sustainability of banking business: A proposed conceptual model for Islamic microfinance banks in Nigeria. International Journal of Social Economics, 44(12), 2238–2256. https://doi.org/10.1108/IJSE-07-2016-0205.
Allen J, et al. (2017). The impact of macroprudential housing finance tools in Canada. Journal of Financial Intermediation. https://doi.org/10.1016/j.jfi.2017.08.004
Al-Salim, F. H. (2009). Islamic Financial Product Innovation. International Journal of Islamic and Middle Eastern Finance and Management. Vol. 2 Issue: 3, 187-200, https://doi.org/10.1108/17538390910986326
Beirne, J., & Friedrich, C. (2017). Macroprudential policies, capital flows, and the structure of the banking sector. Journal of International Money and Finance, 75, 47–68. https://doi.org/10.1016/j.jimonfin.2017.04.004.
Bian, X., Lin, Z., & Liu, Y. (2018). House price, loan-to-value ratio and credit risk. Journal of Banking and Finance, 92, 1–12. https://doi.org/10.1016/j.jbankfin.2018.04.006.
Bianchi, J., & Mendoza, E. G. (2018). Optimal time-consistent macroprudential policy. Journal of Political Economy, 126(2), 588–634. https://doi.org/10.1086/696280.
Cerutti, E., Dagher, J., & Dell’Ariccia, G. (2017). Housing finance and real-estate booms: a cross-country perspective. Journal of Housing Economics. Volume 38, 1-13. https://doi.org/10.1016/j.jhe.2017.02.001.
Clancy, D. K., & Collins, D. (2014). Capital budgeting research and practice: The state of the art (Vol. 24). https://doi.org/10.1108/S1474-787120140000024004.
Craig, R., & Hua, C. (2011). Determinants of property prices in Hong Kong SAR: Implications for policy. Working Paper No. 11/277. Retrieved from https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Determinants-of-Property-Prices-in-Hong-Kong-SAR-Implications-for-Policy-25389, March 6th 2018.
Crowe, et al. (2013). How to deal with real estate booms: Lessons from country experiences. 300-319. Journal of Financial Stability, 9(3), 300–319. https://doi.org/10.1016/j.jfs.2013.05.003.
Deng, Y., & Cranford, S. W. (2018). Tunable toughness of model fibers with bio-inspired progressive uncoiling via sacrificial bonds and hidden length. Journal of Applied Mechanics, Transactions ASME, 85(11). https://doi.org/10.1115/1.4040646.
Fareed, S., Arsalan, T., & Ayubi, S. (2017). Bank deals with liquidity: The micro and macroeconomic determinants approach evidence from Pakistan (Vol. 2017-January, pp. 1073–1086). Presented at the Proceedings of the 30th International Business Information Management Association Conference, IBIMA 2017 - Vision 2020: Sustainable Economic development, Innovation Management, and Global Growth.
Frost, J., & van Stralen, R. (2018). Macroprudential policy and income inequality. Journal of International Money and Finance, 85, 278–290. https://doi.org/10.1016/j.jimonfin.2017.11. 010.
Ghosh, S. (2016). Macroprudential policies, crisis and risk-taking: Evidence from dual banking systems in GCC countries. Journal of Islamic Accounting and Business Research, 7(1), 6–27. https://doi.org/10.1108/JIABR-03-2014-0011.
Igan, D., & Kang, H. (2011). Do loan-to-value and debt-to-income limits work? Evidence from Korea.
Jiménez, et.al. (2017). Macroprudential policy, countercyclical bank capital buffers and credit supply: Evidence from the Spanish dynamic provisioning experiments. Journal of Political Economy 125, no. 6, 2126-2177. https://doi.org/10.1086/694289
Kahou, M., & Lehar, A. (2017). Macroprudential policy: A review. Journal of Financial Stability, 29, 92–105. https://doi.org/10.1016/j.jfs.2016.12.005.
Kenc, T., Turhan, M., & Yildrim, O. (2011). The experience with the macro-prudential policies of the central bank of the republic of Turkey in response to the global financial crisis. Policy Research Working Paper. https://doi.org/10.1596/1813-9450-5834.
Koedijk, K. G., Loungani, P., & Monnin, P. (2018). Monetary policy, macroprudential regulation and inequality: An introduction to the special section. Journal of International Money and Finance, 85, 163–167. https://doi.org/10.1016/j.jimonfin.2017.11.003.
Kraft, E., & Galac, T. (2011). Macroprudential regulation of credit booms and busts - the case of Croatia: The World Bank. Policy Research working paper ; no. WPS 5772. Washington, DC: World Bank.
Lok, C. K. (2015). Adoption of smart cardbased E-payment system for retailing in Hong Kong using an extended technology acceptance model (Vol. 23B). https://doi.org/10.1108/S1069-09642015000023B003.
M. Syafi’I, A. (2012). Bank Syariah dari Teori ke Praktik. Jakarta: Gema Insani Press.
Mahlendorf, M. D. (2015). Allowance for failure: reducing dysfunctional behavior by innovating accountability practices. Journal of Management and Governance, 19(3), 655–686. https://doi.org/10.1007/s10997-013-9276-3.
Misnan, M. B., Hee, O. C., & Rizal, A. M. (2018). Foreign consumers purchasing intention towards halal product in Malaysia. International Journal of Engineering and Technology(UAE), 7(4), 299–304. https://doi.org/10.14419/ijet.v7i4.28.22600.
Morgan, P. J., Regis, P. J., & Salike, N. (2019). LTV policy as a macroprudential tool and its effects on residential mortgage loans. Journal of Financial Intermediation, 37, 89–103. https://doi.org/10.1016/j.jfi.2018.10.001.
Qudraty, M., & Suriani, S. (2017). Effectiveness of makroprudensi policy banking and distribution of credit in Aceh. Journal of Economic Perspectives Darussalam, 2(1), 32–53.
Sarangee, K. R., Woolley, J. L., Schmidt, J. B., & Long, E. (2014). De-escalation mechanisms in high-technology product innovation. Journal of Product Innovation Management, 31(5), 1023–1038. https://doi.org/10.1111/jpim.12142.
Sutt, et al. (2011). The role of macro-prudential policies in the boom and adjustment phase of the credit cycle in Estonia. Policy Research working paper ; no. WPS 5835. Washington, DC: World Bank. http://documents.worldbank.org/curated/en/471931468246912942/The-role-of-macro-prudential-policies-in-the-boom-and-adjustment-phase-of-the-credit-cycle-in-Estonia
Article StatisticAbstract view : 129 times
PDF views : 88 times
How To Cite This :
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.