Proceeding International Seminar of Islamic Studies
INSIS 5 (March 2023)

VECTOR AUTOREGRESSION: THE RELATIONSHIP BETWEEN MACRO AND MICROECONOMICS

AL Bara (Universitas Muhammadiyah Sumatera Utara)
Riyan Pradesyah (Universitas Muhammadiyah Sumatera Utara)



Article Info

Publish Date
23 Mar 2023

Abstract

The research was conducted to see the relationship and influence of the rupiah exchange rate, non-performing financing, financing to deposits, and islamic bank profits. This study used time seris data, which was taken from the Financial Services Authority website. The method used in the study was Vector Auto Regression (VAR). The results of the research obtained are that there is a reciprocal relationship between  the Rupiah Exchange Rate, Non-Performing Financing, Financing To Deposits, and the profit of Islamic banks, this is seen from the results of the Granger Causality Test, where the F-statistical and Probability values are not equal to 0.  Meanwhile,  in the variance test, rupiah exchange rate decomposition affected the profit of Islamic banks by 1.65%, NPF affected net profit by 0.22%, and FDR affected the net profit of Islamic banks by 3.42%.

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Journal Info

Abbrev

insis

Publisher

Subject

Religion Arts Astronomy Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice Mathematics Physics Other

Description

Proceeding International Seminar of Islamic Studies, published by the Faculty of Islamic Religion, University of Muhammadiyah Sumatera Utara (UMSU), Medan, Indonesia, which includes articles on the scientific research field of Islamic studies and Islamic education, Islamic law, and Islamic ...