FINANCING-TO-VALUE (FTV) POLICY AND ITS IMPACT ON RESIDENTIAL PROPERTY PRICES IN INDONESIA

  • Imam Wahyudi Indrawan International Islamic University Malaysia, Malaysia
  • Maya Puspa Rahman International Islamic University Malaysia, Malaysia
  • Nurfatihah Ahmad Senusi International Islamic University Malaysia, Malaysia
Keywords: Dual banking system, financing-to-value (FTV) policy, macroprudential policy, residential property price index

Abstract

Financing-to-value (FTV) policy is a macroprudential policy currently used by the central banks to maintain the stability of financial systems and prevent systemic risks. In Indonesia this is particularly the case in relation to financing of the property sector by Islamic financial institutions. This paper aims to analyse the impact of FTV policy on the residential property price index (RPPI) in Indonesia using a panel data analysis method. Indonesia is chosen in this study as it is one of the countries implementing FTV policy in its Islamic banking system. There are three important findings to be drawn from the study. First, FTV policy ratios significantly affect RPPI.

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Published
2020-09-10
How to Cite
Indrawan, I., Rahman, M., & Senusi, N. (2020). FINANCING-TO-VALUE (FTV) POLICY AND ITS IMPACT ON RESIDENTIAL PROPERTY PRICES IN INDONESIA. Journal of Islamic Monetary Economics and Finance, 6(3). https://doi.org/10.21098/jimf.v6i3.1176
Section
Articles