THE EFFECT OF SPIN-OFF POLICY AND MACROECONOMIC FUNDAMENTAL FACTORS ON THIRD PARTY FUNDS AT SHARIA GENERAL BANKS

Abstract

In enhancing the development of Islamic banking, the government issued Law No. 21 of 2008 concerning spin-off. With this policy, it is expected that Islamic Commercial Banks will develop. This study aims to implement panel data regression to examine in depth the influence of spin-off policy and macroeconomic fundamental factors on third party funds of Sharia General Banks. Sampling by purposive sampling, six (6) Sharia General Banks that have conducted spin-offs and financial report data from 2014-2018. The Chow Test and the Hausman Test show that the panel data regression model that matches the variable data used in 2014-2018 is the Random Effect Model (REM). Empirical results show that during the 2014-2018 period, the spin-off policy and macroeconomic fundamental factors had a significant effect on the bank's third-party funds simultaneously. Partially, only the spin-off policy has a significant effect on third party funds.