MONETARY POLICY AND ISLAMIC BANK STABILITY IN INDONESIA

Authors

  • Imronjana Syapriatama Universitas Islam Negeri (UIN) Mataram
  • Intan Kusuma Pratiwi Universitas Islam Negeri (UIN) Mataram

DOI:

https://doi.org/10.20414/jed.v3i01.3367

Keywords:

Monetary Policy, Bank Stability, ARDL

Abstract

The purpose of this paper is to examine the role of monetary policy to Islamic Bank Stability in Indonesia from January 2007 to December 2020. The policy is presented by Bank Indonesia 7DRR while Islamic Bank Stability uses Islamic Bank Z-score. This paper also employs several variables as control variable in order to manage effectiveness of the model.

This paper uses Autoregressive Distributed Lag method (ARDL) in order to investigate the long run and short run effect between selected variables. The results reveal that the policy does not affect the Islamic Bank Stability in the long run. It only affects the  Stability in the short run. The result also implies that tightening policy is responded by Islamic Bank Stability based on the financial environment.

Downloads

Download data is not yet available.

Downloads

Published

2021-06-28

Issue

Vol. 3 No. 1 (2021): Journal of Enterprise and Development (JED)

Section

Original Articles

License

Authors who publish with this journal agree to the following terms:

1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).