Mohammad Abdul Matin Chowdhury
School of Business Administration, East Delta University, Chattogram, Bangladesh

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The asymmetric impact of macroeconomic variables on Islamic bank home financing in Indonesia Faaza Fakhrunnas; Mohammad Abdul Matin Chowdhury; MB Hendrie Anto
Jurnal Ekonomi & Keuangan Islam Volume 9 No. 2, July 2023
Publisher : Faculty of Economics, Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/JEKI.vol9.iss2.art1

Abstract

Purpose – The study investigates the performance of non-performing financing (NPF) in the housing sector concerning the asymmetric influence of macroeconomic conditions. Methodology – The method of the study adopts nonlinear autoregressive distributed lag (NARDL), while the data of the study ranges from 2014m6 to 2022m2.Finding – The findings reveal an asymmetric relationship between macroeconomic variables and NPF is present both in the short and long run. In addition, the COVID-19 has worsened the NPF of Islamic banks' home financing in some sectors in the short run, while only such financing in the flat and apartment market has suffered during the pandemic in the long run.Implication – The implication of the study suggests that the Islamic banking industry and financial authority need robust risk management and financial policies, respectively, to achieve and maintain the stability of Islamic banks in home financing activities. Originality – The study is original in measuring the impact of macroeconomic influences on Islamic banks' home financing from a nonlinear viewpoint.