Record Details

DOES FRACTIONAL RESERVE BANKING SYSTEM EXIST IN INDONESIAN ISLAMIC BANKING?

Journal of Islamic Monetary Economics and Finance

View Archive Info
 
 
Field Value
 
Title DOES FRACTIONAL RESERVE BANKING SYSTEM EXIST IN INDONESIAN ISLAMIC BANKING?
 
Creator Syamlan, Yaser Taufik
Istiana, Nur
 
Description Fractional Reserve Banking is the banking and financial system that have been applied in most countries around the world.  This research aims to look at the impact empirically and at the contributions given from the components of fractional reserve banking against inflation that occurs in Sharia Commercial Banks and Sharia Business Unit.  The fractional reserve banking components covered in these studies are statutory reserve requirement, total deposit, total financing, Mismatch Ratio, and Total non-performing financing.  This research is using VAR VECM and ECM as analysis tools and also collecting secondary data from OJK that spanned from June 2014 to September 2018.  The results of this research have found that Indonesian Islamic bank is doing the fractional reserve banking system (FRBS). Furthermore, the largest contributor of FRBS in Sharia Commercial Bank (BUS) is the Statutory Reserve Requirment while in sharia Business Unit the results showed that Third Party Fund and Mismatch ratio gives the greatest contributions against inflation. Interestingly, the UUS has greater contribution and shock to the inflation if we compare to the BUS.  To prevent the effect of it in the future, controlling mismatch and introducing the irrevocable investment account might be the solutions.
 
Publisher Bank Indonesia
 
Date 2019-02-09
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://jimf-bi.org/index.php/JIMF/article/view/1009
10.21098/jimf.v4i2.1009
 
Source Journal of Islamic Monetary Economics and Finance; Vol 4 No 2 (2018): NOVEMBER; 369-400
2460-6618
2460-6146
 
Language eng
 
Relation http://jimf-bi.org/index.php/JIMF/article/view/1009/738
 
Rights Copyright (c) 2018 Yaser Taufik SYAMLAN