The impact of macroeconomic variables toward Islamic personal financing / Siti Nor Adilah Hanan

This study aims to examine the dynamic relationship of the impact of macroeconomic variables toward Islamic personal financing for the case of Bank Rakyat Kubang Kerian during the period of January 2010 until December 2012 using time series framework. This study is including several control variables such as interest rate, inflation and industrial production. The stationary between variable are examine using Augmented dickey-fuller while the relationship between variable are tested using regression at preliminary test. Furthermore, the study shows that interest rate have negative relationship with dependent variable, while inflation has positive relationship with dependent variable. However, the existing of industrial production insignificantly affect total loan apply. Hence, it’s recommended that bankers need to be aware with the changes on conventional interest rate and inflation because the occurrence of this may affect the demand for financing.