Islamic Bank Financing Behavior

A Survey in Asia

DOI

10.2991/assehr.k.220407.011How to use a DOI?

Keywords

Islamic bank; financing; NPF

Abstract

This paper aims to analyze how is the Islamic Banks provided financing behavior in Asia. This financing behavior is interesting to study because economic conditions do not influence it and even contribute to the stability of the financial system and the economy. Currently, Islamic Banks are still relied on to provide financing to their customers, most of whom are in the real business sector, according to Islamic principles in the halal business sector. Using a sample of Islamic Banks in 7 Asian countries, based on the 2013 - 2019 period we find that Islamic Bank financing (OC) in Asia is influenced by the capital adequacy ratio (CAR), the level of non-performing financing (NPF) and economic growth (GDP). Cointegration testing through the Johansen Cointegration Test shows that in the four variables, namely OC, CAR, NPF, and GDP, there is a long-term or cointegrated relationship, so we use VECM analysis to see the effect between variables. In the long term, CAR, NPF and GDP significantly influence OC. The biggest variable contributions to OC are CAR, GDP, and NPF.

Copyright

© 2022 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Tasya Aspiranti
AU  - Westi Riani
AU  - Ima Amaliah
PY  - 2022
DA  - 2022/04/23
TI  - Islamic Bank Financing Behavior
BT  - Proceedings of the 4th Social and Humanities Research Symposium (SoRes 2021)
PB  - Atlantis Press
SP  - 57
EP  - 65
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.220407.011
DO  - 10.2991/assehr.k.220407.011
ID  - Aspiranti2022
ER  -