{"id":3575,"date":"2020-06-08T00:08:06","date_gmt":"2020-06-07T22:08:06","guid":{"rendered":"http:\/\/www.rsijournal.eu\/?p=3575"},"modified":"2020-06-07T18:24:47","modified_gmt":"2020-06-07T16:24:47","slug":"effect-of-inflation-on-total-deposits-and-financing-of-sharia-commercial-banks-a-monthly-data-evidence-from-indonesia","status":"publish","type":"post","link":"https:\/\/rsijournal.eu\/?p=3575","title":{"rendered":"EFFECT OF INFLATION ON TOTAL DEPOSITS AND FINANCING OF SHARIA COMMERCIAL BANKS: A MONTHLY DATA EVIDENCE FROM INDONESIA"},"content":{"rendered":"<h2>IKHSAN<\/h2>\n<h3>Senior Lecturer, Faculty of Economics and Business, UniversitasSyiah Kuala, Banda Aceh,  Indonesia<\/h3>\n<h3>ikhsan30303@unsyiah.ac.id<\/h3>\n<h2>Cut Dian FITRI<\/h2>\n<h3>Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda   Aceh, Indonesia<\/h3>\n<h3>cutdianfitri@ar-raniry.ac.id<\/h3>\n<h2>Hafiizh MAULANA<\/h2>\n<h3>Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda   Aceh, Indonesia<\/h3>\n<h3>hafiizh.maulana@ar-raniry.ac.id<\/h3>\n<h2>Khairul AMRI<\/h2>\n<h3>Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda   Aceh, Indonesia<\/h3>\n<h3>khairul.amri@ar-raniry.ac.id<\/h3>\n<h3>(corresponding author)<\/h3>\n<p><strong>Abstract<\/strong><\/p>\n<p>The main purpose of the paper is to determine the effect of inflation on total deposits and the financing of sharia commercial banks in Indonesia. A monthly time series data over the period of 2012.1-2017.6 was analyzed using Johansen Co-integration test, vector error correction model, and Granger causality test. The co-integration test indicates that there is a long-run relationship between the variables. In the long-run, inflation is negatively related to total deposits and sharia financing. In the short-run, the inflation has no significant effect on the two variables. The sharia financing has a negative effect on itself at the 1 and 2-month period. The result of the Granger causality test points out that there is a bidirectional causality relationship between total deposits and sharia financing. Furthermore, unidirectional causality running from the inflation to sharia financing and from total deposits to the inflation.<\/p>\n<p><strong>Keywords:<\/strong> Inflation, Total Deposits, Sharia Financing, VECM, and Granger Causality Test<\/p>\n<p><strong>JEL classification: <\/strong>E31, E51, G21, N15<\/p>\n<p><a href=\"http:\/\/www.rsijournal.eu\/ARTICLES\/June_2020\/8.pdf\" target=\"_blank\"><em>read more<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>IKHSAN Senior Lecturer, Faculty of Economics and Business, UniversitasSyiah Kuala, Banda Aceh, Indonesia ikhsan30303@unsyiah.ac.id Cut Dian FITRI Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda Aceh, Indonesia cutdianfitri@ar-raniry.ac.id Hafiizh MAULANA Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda Aceh, Indonesia hafiizh.maulana@ar-raniry.ac.id Khairul AMRI Lecturer, Faculty of Islamic&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[181],"tags":[965,916,1022,1023,1025,1024,1027,1026,853],"class_list":["post-3575","post","type-post","status-publish","format-standard","hentry","category-published","tag-and-granger-causality-test","tag-e31","tag-e51","tag-g21","tag-inflation","tag-n15","tag-sharia-financing","tag-total-deposits","tag-vecm"],"_links":{"self":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/3575","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3575"}],"version-history":[{"count":1,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/3575\/revisions"}],"predecessor-version":[{"id":3576,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/3575\/revisions\/3576"}],"wp:attachment":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}