期刊名称：Journal of Islamic Monetary Economics and Finance
印刷版ISSN：2460-6146
电子版ISSN：2460-6618
出版年度：2018
卷号：3
期号：2
页码：139-180
语种：English
出版社：Bank Indonesia
摘要：It is wwidely believed that lslamic finance is inherently stable since the principle of risk- sharing and linking the financial to real counterpart in particular through its socialfinance are applied,hence the financial stability may sccessfully be attained.Ifmimicking the conventional finance,lslamic model will probably be facing instability,following the financial cycle.There has been a growing literature discussing credit cyclein mainstream perspective since 2008 global financial crash.However,it is quite rare tofind study,in macro context,on credit qycles and the effectiveness of integrated lslamiccommercial and social finance in achieving macroprudential objective: curtailingexcessive credit.This study is designed to empirically examine the characteristics of ydlesstemming from conventional and lslamic credit whether both have similar trend and alsoto investigate how the integrated Islamic commercial and social finance may be effectiveto hamper such cycles.By employing Hodrick- Presscot Filter,Markov Switching andVector Error Correction Model,this study demonstrates that,in terms of cycle,lslamicmodel ycle has certain similarities with conventional counterpart since it functions undersimilar financial environment despite the fact that Islamic has less amplitude comparedwith conventional credit.Both credit and financing cycles tend tc grow rapidly (excessive)several months before global financial crisis happened in 2008.This means that.in a dualbanking system,credit and financing boom may precede financial crisis.Moreover,itisapparent also that the integrated lslamic finance is proven to be effective in curbingcredit growth due to the efectiveness of both macroprudential instrument applied inbanking sector and social finance in safeguarding financial stability.
