Analysis of determining the financial inclusion index of composite, conventional and sharia banking in Indonesia

Banks and Bank Systems

Ari Mulianta Ginting¹  Eleonora Sofilda²  Muhammad Zilal Hamzah³ 

[1] Doctor, Researcher in Research Center, Secretary-General of the House of Representatives of Indonesia;Ph.D., Lecturer in Doctoral Program in Economics in Public Policy Studies, Faculty of Economics and Business, Trisakti University;Ph.D., Professor in Doctoral Program in Economics in Public Policy Studies, Faculty of Economics and Business, Trisakti University;

关键词: economic growth;    financial inclusion;    human development index;    Islamic banking;    panel data regression;   

DOI  :  10.21511/bbs.17(1).2022.04

来源: DOAJ

【 摘 要 】

In Indonesia financial inclusion remains a challenge. This study looked at how the human development index, gross domestic product, and the number of offices of banks affect the financial index in 34 Indonesian provinces for composite, conventional, and sharia banking. This study uses panel data from 2016 to 2019 to address research questions. According to the findings of this study, economic growth, human development index, regional gross domestic product per capita, and bank brances significantly influence the financial inclusion index of the composite banking. Meanwhile, economic growth, human development index, gross domestic product per capita, and the number of bank branches impact the financial inclusion index of conventional banking. However, the financial inclusion index for sharia banking shows that only economic growth variables, regional gross domestic product per capita, and the number of sharia bank branches have a significant influence. The human development index variable does not have a significant influence. Based on these findings, the Financial Service Authority (OJK) and Bank Indonesia must promote a conducive climate for increasing the financial inclusion of banking in Indonesia for both conventional and Islamic banks.

【 授权许可】

Unknown