Determinants of Micro, Small and Medium Enterprise (MSME) Financing and Its Implications for Sharia Banking Profitability
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 7
Abstract
Development of Micro, small and medium enterprises (MSME) in Indonesia has increased yearly, but this is not followed by SMEs financing in shariah banking, which the proportion is relatively decreasing in a couple years. This study aims to analyze the influence of the Deposit or third party fund to MSME financing and also to analyze the implication of MSME Financing to Shariah banks profitability . This study uses a Vector Error Correction Model (VECM) to see the long term effect and response to shock that occur in the studied variables. The result shows that in the short run and the long run CAR has negative and significant effect to MSME Financing. DPK, NPF, BOPO dan FDR has positive significant to MSME financing in the long term. DPK, CAR, NPF has positive significant to Shariah Banks Profitability in the long term. BOPO and NPF has positive significant in the short run. Shock to CAR are negatively responsed by MSME financing. Shock to MSME Financing are negatively responsed by Shariah Banks Profitability (ROA) and will stable in a long term.
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- EP ID EP412078
- DOI 10.9790/487X-2007012235.
- Views 65
- Downloads 0
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