Islamic banking deposits in Indonesia: do spatial effects matter?

Suprayitno, Eko ORCID: and Dhita, Silvia Vara (2022) Islamic banking deposits in Indonesia: do spatial effects matter? International Journal of Monetary Economics and Finance, 15 (4). pp. 386-405. ISSN 1752-0487

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This study aims to analyze the spatial effect on Islamic banking deposits and identify the factors that influence Islamic banking deposits in a province in Indonesia as an archipelagic country. This study used a Spatial Autoregressive Model (SAR Moran’s I), Spatial Error Model (SEM), and the Local Indicator of Spatial Association (LISA). The result of Moran’s I model showed a strong spatial influence on Islamic bank deposits. Jakarta and West Java Provinces enjoy high Islamic Bank Deposits. However, Banten Province enjoys low Islamic Bank Deposits despite being surrounded by high-value neighboring provinces. The Lagrange Multiplier (SAR) test results on the factors that affect the geographic spatial concentration of the deposit distribution patterns are at the level of GRDP, offices, and total assets. Meanwhile, the LISA test shows how the value of deposits in a province affects a particular province.

Item Type: Journal Article
Keywords: spatial effect; spatial analysis; Islamic bank; Islamic bank deposits
Depositing User: Eko Suprayitno
Date Deposited: 12 Apr 2023 13:39


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