New Proposed Determinants of Money Markets Interbank Based on Shariah Principles: An Empirical Overview from Indonesia

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Muhammad Arif Kurniawan, Dian Masyita, Mokhamad Anwar, Sulaeman Rahman Nidar


As the implementation of law 21 of 2008 the Government must regulate sharia bank operations in detail and comprehensively. This study aims to explain the money markets interbank based on shariah principles in Indonesian context. The mixed method of quantitative and descriptive causality is employed to decribe the influence of sharia money market phenomenon that occurs. Observation of time series data that is cross section in one specific time period, namely data from 2009 to 2020 using Eviews 9 software. Autoregressive Distributed Lag (ARDL) analysis is used as the basis for using the Ordinary Least Square (OLS) model so that stationary tests are required on each variable using the Unit Root Test. The results showed that the volume of PUAS, interbank mudharabah investment, sharia SBI, GWM, deposit, financing, operation cost, ROA and exchange rate are the variables that forms the determinant of sharia money market in Indonesia. This model is considered to generate a solution in the form of a model that can provide the best predictive results.

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