ANALYSIS OF THE ROLE OF ISLAMIC BANKING IN INDONESIA'S ECONOMIC GROWTH

Authors

  • Mardhiyya Azhari Sjech M. Djamil Djambek State Islamic University Bukittinggi
  • Febrina Adita Putri Sjech M. Djamil Djambek State Islamic University Bukittinggi
  • Fauziah Sukmawati Sjech M. Djamil Djambek State Islamic University Bukittinggi
  • Wahyu Nusantara Sjech M. Djamil Djambek State Islamic University Bukittinggi

Keywords:

VAR/VECM, Economic Growth, Islamic Banking

Abstract

Banking is one sector that is important for the growth of a country, because the bank is the intermediary institutions which collect funds from people who have a surplus and distribute to the people who need funds. This study aimed to analyze the role of Islamic banking on economic growth due to the rapid development of Islamic banking in Indonesia. By using VAR/VECM to determine the influence of Islamic banking for economic growth is represented by the IPI. The results showed that the total assets of Islamic banking does not have a significant effect on economic growth, while the Islamic banking financing a significant effect on economic growth.

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Published

2023-12-15

Issue

Vol. 1 (2023): Proceedings of the Perbanas International Seminar on Economics, Business, Management, Accounting and IT

Section

Articles