Proceedings of the 1st International Conference Postgraduate School Universitas Airlangga : "Implementation of Climate Change Agreement to Meet Sustainable Development Goals" (ICPSUAS 2017)

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The External and Internal Factors on Micro, Small and Medium Enterprise (SME) Financing in Islamic Bank

Authors
Fira Nurafini, Raditya Sukmana, Sri Herianingrum
Corresponding Author
Fira Nurafini
Available Online August 2017.
DOI
10.2991/icpsuas-17.2018.28How to use a DOI?
Keywords
Macroeconomics; Monetary Instrument; CAMELS; SME Financing; Islamic Bank
Abstract

The world recognizes that micro, small and medium enterprises (SMEs) play a very vital role in development and economic growth (Tambunan in Ramadhan and Beik, 2013). This study examines the influence of external and internal factors on SME financing in Indonesia Islamic bank. External factors consist of BI Rate and Inflation, while the internal factors consist of SBIS, CAR, ROA, NPF, FDR and ROA ratio on Islamic banking in Indonesia. This study uses quantitative methods. The data used was monthly data from 2011 to the third quarter of 2016. Data obtained from Bank Indonesia reports and the Islamic Bank Statistics from Indonesia Financial Services Authority. The analysis technique used in this research is a multiple linear regression. The results from this study are BI Rate, Inflation, SBIS, CAR, ROA, NPF, FDR and BOPO ratio simultaneously have a significant effect on SME financing in Indonesia Islamic bank from the period 2011 until 2016. Change in macroeconomic conditions (external factor) will indirectly have an impact on the internal conditions of Islamic bank, which in turn have an impact on Islamic banking intermediation function, especially for the SME sector. While partially, only BI Rate, CAR, NPF and FDR ratio have a significant effect on SME financing of Indonesia Islamic Bank. The other variables, namely Inflation, SBIS, ROA and BOPO ratio has no significant effect on SME financing of Indonesia Islamic bank. BI Rate, CAR and NPF ratio have a negative and significant effect on SME financing, while FDR ratio has a positive and significant effect on SME financing of Indonesia Islamic bank for the period 2011 to 2016.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 1st International Conference Postgraduate School Universitas Airlangga : "Implementation of Climate Change Agreement to Meet Sustainable Development Goals" (ICPSUAS 2017)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
August 2017
ISBN
978-94-6252-461-3
ISSN
2352-5398
DOI
10.2991/icpsuas-17.2018.28How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Fira Nurafini
AU  - Raditya Sukmana
AU  - Sri Herianingrum
PY  - 2017/08
DA  - 2017/08
TI  - The External and Internal Factors on Micro, Small and Medium Enterprise (SME) Financing in Islamic Bank
BT  - Proceedings of the 1st International Conference Postgraduate School Universitas Airlangga : "Implementation of Climate Change Agreement to Meet Sustainable Development Goals" (ICPSUAS 2017)
PB  - Atlantis Press
SP  - 122
EP  - 126
SN  - 2352-5398
UR  - https://doi.org/10.2991/icpsuas-17.2018.28
DO  - 10.2991/icpsuas-17.2018.28
ID  - Nurafini2017/08
ER  -