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The Influence of Conventional Banking and Sharia Banking on Economic Growth in Indonesia

Jurnal Ilmiah Peuradeun · Vol. 13 No. 1 (2025) · hlm. 223–250

DOI
10.26811/peuradeun.v13i1.1418
ISSN
2443-2067, 2338-8617
Terbit
2025-01-30
Penerbit
SCAD Independent
Bahasa
eng
Lisensi
creativecommons.org/licenses/by-sa/4.0

Abstrak

The financial sector is referred to as one of the factors influencing the monetary crisis. This study examined the relationship between the banking development score in the dual banking system model and economic growth in Indonesia. This study used a quantitative method, using the VECM approach and the Granger Causality model. The findings showed that Conventional Banking Credit Growth, Sharia Banking Financing Growth, PMTB, LDR and FDR, and ROA of conventional and Sharia banks had a positive effect on economic growth in Indonesia. The inflation variables, NPF, and NPL had a negative effect on economic growth in Indonesia. This finding provided us with an understanding that the existence of Sharia banking could drive economic growth in Indonesia. In conventional banks, in the long term, there was a long-term relationship between the independent variables and the dependent variables. This study provided new insights into the influence of the banking sector on economic growth in Indonesia, highlighting the importance of synergy between conventional and Islamic banking in creating diverse financial instruments and enhancing access to banking services, especially in areas with limited financial access.

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  • Lambung Mangkurat University
  • Universitas Gadjah Mada
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Fanda FadillaAfiliasi tidak diketahui1
Faisal FauzanAfiliasi tidak diketahui1
Ira MaghfirahAfiliasi tidak diketahui1
Teuku ZulfikarAfiliasi tidak diketahui1
Armiadi MusaAfiliasi tidak diketahui1
Azhari AzhariUniversitas Gadjah Mada1
Faisal FaisalLambung Mangkurat University1
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Teuku Roli Ilhamsyah PutraAfiliasi tidak diketahui1
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Sumber metadata: OAI-PMH (metadata jurnal) https://journal.scadindependent.org/index.php/jipeuradeun/oai, pertama di-harvest 7 Nov 2026, terakhir terlihat 8 Nov 2026.
Metadata asli (oai_dc)
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	<dc:title xml:lang="en">The Influence of Conventional Banking and Sharia Banking on Economic Growth in Indonesia</dc:title>
	<dc:creator xml:lang="en">Mutia, Ratna</dc:creator>
	<dc:creator xml:lang="en">Masbar, Raja</dc:creator>
	<dc:creator xml:lang="en">Abd. Majid, M. Shabri</dc:creator>
	<dc:creator xml:lang="en">Khalidin, Bismi</dc:creator>
	<dc:subject xml:lang="en">Conventional Banking</dc:subject>
	<dc:subject xml:lang="en">Sharia Banking</dc:subject>
	<dc:subject xml:lang="en">Granger Causality</dc:subject>
	<dc:subject xml:lang="en">VECM</dc:subject>
	<dc:subject xml:lang="en">Social Sciences</dc:subject>
	<dc:description xml:lang="en">The financial sector is referred to as one of the factors influencing the monetary crisis. This study examined the relationship between the banking development score in the dual banking system model and economic growth in Indonesia. This study used a quantitative method, using the VECM approach and the Granger Causality model. The findings showed that Conventional Banking Credit Growth, Sharia Banking Financing Growth, PMTB, LDR and FDR, and ROA of conventional and Sharia banks had a positive effect on economic growth in Indonesia. The inflation variables, NPF, and NPL had a negative effect on economic growth in Indonesia. This finding provided us with an understanding that the existence of Sharia banking could drive economic growth in Indonesia. In conventional banks, in the long term, there was a long-term relationship between the independent variables and the dependent variables. This study provided new insights into the influence of the banking sector on economic growth in Indonesia, highlighting the importance of synergy between conventional and Islamic banking in creating diverse financial instruments and enhancing access to banking services, especially in areas with limited financial access.</dc:description>
	<dc:publisher xml:lang="en">SCAD Independent</dc:publisher>
	<dc:date>2025-01-30</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.scadindependent.org/index.php/jipeuradeun/article/view/1418</dc:identifier>
	<dc:identifier>10.26811/peuradeun.v13i1.1418</dc:identifier>
	<dc:source xml:lang="en">Jurnal Ilmiah Peuradeun; Vol. 13 No. 1 (2025): Jurnal Ilmiah Peuradeun; 223-250</dc:source>
	<dc:source>2443-2067</dc:source>
	<dc:source>2338-8617</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.scadindependent.org/index.php/jipeuradeun/article/view/1418/944</dc:relation>
	<dc:relation>https://journal.scadindependent.org/index.php/jipeuradeun/article/view/1418/974</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Jurnal Ilmiah Peuradeun</dc:rights>
	<dc:rights xml:lang="en">http://creativecommons.org/licenses/by-sa/4.0</dc:rights>
</oai_dc:dc>