Journal of Islamic Economics and Philanthropy
Vol. 8 No. 4 (2026): May

The Effect of Macroeconomic Variables on Financing in Islamic Banks

Rachel rachel (Ahmad Dahlan University)
Fajar Setianto (Universitas Ahmad Dahlan)



Article Info

Publish Date
14 May 2026

Abstract

Macroeconomic variables are closely related to financial conditions. During the 1997-1998 crisis, the achievement of the financial sector was tested through the depreciation of the rupiah exchange rate and the uncertainty of domestic economic growth. The 2008 crisis tested the achievements of the financial sector through the global financial crisis and in 2020 it was tested through the Covid-19 crisis. However, Islamic banking is relatively unaffected by some of these crises, this is because Islamic banking has a unique business model and Islamic banking is a productive intermediary institution compared to conventional banks. This study aims to examine macroeconomic variables such as domestic interest rates, inflation, exchange rates and foreign interest rates on Islamic bank financing. The study uses time-series data and multiple regression method. These findings highlight that stable monetary conditions, particularly interest rates and exchange rates, are essential for sustaining the performance of Islamic banking. The implication of the research is that maintaining exchange rate stability and price stability is the main agenda of the government in maintaining the growth of the financial sector, especially the Islamic financial sector.

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Journal Info

Abbrev

jiep

Publisher

Subject

Description

The Journal of Islamic Economics and Philanthropy (JIEP) is published quarterly in August, November, February, and May. The journal accepts only original empirical research, theoretical contributions, and systematic literature reviews. JIEP focuses on the intersection of Islamic economics and ...