Macroeconomic effect and risk-taking behavior in a dual banking system
This study aims to analyze the relationship between macroeconomic factors and risk-taking behavior in a dual banking system. Adopting a panel cointegration approach, this research posits macroeconomic factors as exogenous variables and risk-taking behavior as endogenous variables. With having 468 qu...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2018-07-01
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| Series: | Economic Journal of Emerging Markets |
| Subjects: | |
| Online Access: | http://journal.uii.ac.id/JEP/article/view/10802 |
| _version_ | 1828393417050161152 |
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| author | Faaza Fakhrunnas Wulan Dari Mustika Noor Mifrahi |
| author_facet | Faaza Fakhrunnas Wulan Dari Mustika Noor Mifrahi |
| author_sort | Faaza Fakhrunnas |
| collection | DOAJ |
| description | This study aims to analyze the relationship between macroeconomic factors and risk-taking behavior in a dual banking system. Adopting a panel cointegration approach, this research posits macroeconomic factors as exogenous variables and risk-taking behavior as endogenous variables. With having 468 quarterly-observations consisting of 18 banks in Indonesia during 2010-Q4 to 2017-Q1, it finds that the risk-taking behavior of the banks has a long-term relationship with macroeconomic factors. Moreover, conventional bank has long-term relationship to macroeconomic nonetheless it results inversely to Islamic bank. In terms of bank-specified characteristics, bank size and equity to asset ratio are substantial factors for the banks’ risk mitigation. |
| first_indexed | 2024-12-10T07:38:55Z |
| format | Article |
| id | doaj.art-79211b4386574bc984a116bef899a031 |
| institution | Directory Open Access Journal |
| issn | 2086-3128 2502-180X |
| language | English |
| last_indexed | 2024-12-10T07:38:55Z |
| publishDate | 2018-07-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj.art-79211b4386574bc984a116bef899a0312022-12-22T01:57:22ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2018-07-0110210.20885/ejem.vol10.iss2.art58073Macroeconomic effect and risk-taking behavior in a dual banking systemFaaza Fakhrunnas0Wulan Dari1Mustika Noor Mifrahi2Department of Economics, Universitas Islam Indonesia, Yogyakarta, IndonesiaDurham University Business School, Durham University, United KingdomDepartment of Economics, Universitas Islam Indonesia, Yogyakarta, IndonesiaThis study aims to analyze the relationship between macroeconomic factors and risk-taking behavior in a dual banking system. Adopting a panel cointegration approach, this research posits macroeconomic factors as exogenous variables and risk-taking behavior as endogenous variables. With having 468 quarterly-observations consisting of 18 banks in Indonesia during 2010-Q4 to 2017-Q1, it finds that the risk-taking behavior of the banks has a long-term relationship with macroeconomic factors. Moreover, conventional bank has long-term relationship to macroeconomic nonetheless it results inversely to Islamic bank. In terms of bank-specified characteristics, bank size and equity to asset ratio are substantial factors for the banks’ risk mitigation.http://journal.uii.ac.id/JEP/article/view/10802Risk-taking behaviorMacroeconomic FactorsDual banking system |
| spellingShingle | Faaza Fakhrunnas Wulan Dari Mustika Noor Mifrahi Macroeconomic effect and risk-taking behavior in a dual banking system Economic Journal of Emerging Markets Risk-taking behavior Macroeconomic Factors Dual banking system |
| title | Macroeconomic effect and risk-taking behavior in a dual banking system |
| title_full | Macroeconomic effect and risk-taking behavior in a dual banking system |
| title_fullStr | Macroeconomic effect and risk-taking behavior in a dual banking system |
| title_full_unstemmed | Macroeconomic effect and risk-taking behavior in a dual banking system |
| title_short | Macroeconomic effect and risk-taking behavior in a dual banking system |
| title_sort | macroeconomic effect and risk taking behavior in a dual banking system |
| topic | Risk-taking behavior Macroeconomic Factors Dual banking system |
| url | http://journal.uii.ac.id/JEP/article/view/10802 |
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