@article{repository4309, month = {September}, title = {Economic Turmoil in Islamic Banking Investment}, pages = {1--29}, journal = {Economic Turmoil in Islamic Banking Investment}, publisher = {September 3, 2020}, year = {2020}, abstract = {Investment financing is one of the operational activities of Islamic banking to encourage the real sector. This study aims to analyze the effect of economic turmoil on investment financing, analyze the response to investment financing, and analyze each variable's contribution in explaining the diversity of investment financing. This study uses monthly time series data from 2009 to 2020 using the Vector Error Correction Model (VECM) analysis. The results show that the exchange rate, inflation, and interest rates significantly affect Islamic banking investment financing in the long term. The response to investment financing is the fastest to achieve stability when it responds to shocks to the composite stock price index. The most significant contribution to explaining diversity in investment financing comes from inflation. Islamic banking can increase the proportion of funding for investment. Increased investment financing can make customers have a larger business scale to encourage economic growth.}, url = {http://journal.uinjkt.ac.id/index.php/etikonomi}, keywords = {investasi, Vector Error Correction Model, nilai tukar, inflasi, tingkat suku bunga}, author = {Budiandru, Budiandru and Sari Yuniarti, Sari} }