Journal of Islamic Economic and Business Research
Vol. 1 No. 1: June 2021

Financing Supply of Islamic Banking During COVID-19 Outbreak in Indonesia

Muhammad Anif Afandi (Universitas Muhammadiyah Metro, Indonesia)



Article Info

Publish Date
21 Jun 2021

Abstract

This study aims to analyze the factors that affect the financing supply of Islamic banking during pandemic COVID-19 outbreak in Indonesia. The variable of financial performances of Islamic banking such as Return on Assets (ROA), Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR) and Non-Performing Financing (NPF) are used as the independent variables. Meanwhile, the impact of COVID-19 pandemic is analyzed using dummy variable. Furthermore, each of the independent variables and the dummy variable are tested its influence to the dependent variable, namely the financing supply of Islamic banking by using a proxy of the total financing. Ordinary Least Square (OLS) with double log model used as a data analysis technique with the results of the study show that the variable of ROA has a positive but not significant effect to the financing supply. Variable CAR and FDR each shows a negative and not significant effect to the financing supply. Whereas, the variable of NPF shows a negative and significant effect to the financing supply. Meanwhile, COVID-19 pandemic contributes in giving a positive and significant difference effect to the financing supply than before the presence of COVID-19 in Indonesia. The results of this study prove that the phenomenon of credit crunch in Islamic banking relative can be addressed during pandemic COVID-19 outbreak in Indonesia.

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Journal Info

Abbrev

jiebr

Publisher

Subject

Religion Economics, Econometrics & Finance

Description

Journal of Islamic Economic and Business and Research is a scientific journal which has specialization of research in Islamic Economic and Business Research. Islamic Economic and Business Research is strategic issues in the world because its role and benefit to societies. Therefore, this issue need ...