| dc.description.abstract | ABSTRACT
This study aims to determine the relationship and impact of the selected macroeoconomic variables on the resilience of Islamic banking in Indonesia. The data in this research is in the form of monthly time series spanning from 2010M1 to 2017M12. The dependent variable in this research is the resilience index of Islamic banking. The dependent variables are formed through 3 internal variables of Islamic banking, including Return on Equity (ROE), Return on Assets (ROA), and Third Party Funds (DPK). The independent variable is the selected macroeconomic variables including Gross Domestic Product, Inflation, Exchange Rate and Aggregate Money Supply. The result shows that in 2010M2 - 2010M3 and 2010M8 Islamic banking experiences vulnerability. The vulnerability is caused by internal and external shocks. In addition, by using multiple regression, the results show that the Gross Domestic Product has positive but insignificant effect on the resilience of Islamic banking, whereas Inflation and Exchange Rate have negative and significant effect on the resilience of Islamic banking, and Aggregate Money Supply has no significant, but negative effect on the resilience of Islamic banking. The research suggests that Bank Indonesia and government need to develop various mix of monetary and macroeconomic policy instruments to mitigate any future Islamic banking vulnerability and unabsorbed shocks in order to maintain the resilience of Islamic banking in Indonesia. | en_US |
