ECONOMIC POLICY UNCERTAINTY; IMPACT ON FINANCING RISK AND TOTAL FINANCING OF ISLAMIC BANKS

ECONOMIC POLICY UNCERTAINTY; IMPACT ON FINANCING RISK AND TOTAL FINANCING OF ISLAMIC BANKS

Economic Policy Uncertainty (EPU), Financing Risk and Financing

Slowing performance of the global Islamic financial economy amid economic uncertainty has led to a global increase in food commodity inflation due to disruptions in the food commodity supply chain and fertilizer scarcity, which in turn triggers food protectionism. This research focuses on the relationship between Economic Policy Uncertainty (EPU) and financing risk and total financing of Islamic banks in Indonesia. Time series data is used in this study, comprising 96 monthly data from January 2015 to December 2022, with analysis using Pearson correlation statistics. The first finding indicates a negative correlation between Economic Policy Uncertainty (EPU) and financing risk of Islamic banks, with a correlation coefficient of 72.9%. The second finding reveals a positive correlation between Economic Policy Uncertainty (EPU) and financing of Islamic banks, with a correlation value of 69.2%. Lastly, financing risk is negatively associated with financing of Islamic banks, with a correlation value of 94.7%.

Yudi Siyamto

https://jurnal.stie-aas.ac.id/index.php/IJEBAR

2023

peri irawan

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