Are sharia bank financings in Indonesia procyclical?

Arifa Pratami, Akhsyim Afandi, J. Sriyana, Nur Feriyanto
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Abstract

Purpose – The study aims to determine whether Islamic banks' debt financing and equity financing are procyclical or counter-cyclical.Methodology – The data used in this study cover eight Islamic commercial banks and span from 2008 to 2020, thereby including 72 observations. The analysis employs the dynamic panel data model estimated using the GMM method (Generalized Method of Moments).Findings –The debt-based financing, under murabahah, salam, istishna, and ijarah contracts, did not display clear procyclical or counter-cyclical behavior. In contrast, equity financing based on mudharabah and musyarakah contracts demonstrated procyclical characteristics concerning economic fluctuation.Implications – Policymakers need to pay more attention to Islamic banks with a greater proportion of equity financing for both micro and macroprudential policy purposes since procyclicality is likely to be associated with higher risks. Similarly, Islamic banks with greater proportion of equity financing need to watch carefully the behavior of their equity financing concerning its effect on risks for the purpose of their risk management and prudential policy. Originality – This research paper fills in the absence of studies that examine which category of Islamic bank financing – debt-based or equity-based financing - is more procyclical.
印尼的伊斯兰银行融资是顺周期的吗?
目的-本研究旨在确定伊斯兰银行的债务融资和股权融资是顺周期还是逆周期。方法-本研究使用的数据涵盖八家伊斯兰商业银行,时间跨度为2008年至2020年,因此包括72项观察结果。分析采用GMM(广义矩量法)估计的动态面板数据模型。研究结果-在murabahah, salam, istishna和ijarah合同下,基于债务的融资没有显示出明确的顺周期或反周期行为。相比之下,基于mudharabah和musyarakah合同的股权融资在经济波动方面表现出顺周期特征。影响-政策制定者需要更多地关注具有更大比例股权融资的伊斯兰银行,以达到微观和宏观审慎政策的目的,因为顺周期性可能与更高的风险相关。同样,股权融资比重较大的伊斯兰银行也需要密切关注其股权融资行为对风险的影响,以便进行风险管理和审慎政策。原创性——这篇研究论文填补了缺乏研究的空白,这些研究考察了伊斯兰银行融资的哪一类——基于债务的融资还是基于股权的融资——更具有顺周期性。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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