Financing-To-Value (FTV) policy and its impact on residential property prices in Indonesia

Indrawan, Imam Wahyudi and Rahman, Maya Puspa and Ahmed Sanusi, Nurfatihah (2020) Financing-To-Value (FTV) policy and its impact on residential property prices in Indonesia. Journal of Islamic Monetary Economics and Finance (JIMF), 6 (3). pp. 577-596. ISSN 2460-6146 E-ISSN 2460-6618

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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.

Item Type:	Article (Journal)
Additional Information:	7137/84258
Uncontrolled Keywords:	Dual banking system, Financing-to-value (FTV) policy, Macroprudential policy, Residential property price index
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD101 Land use H Social Sciences > HD Industries. Land use. Labor > HD9000 Special industries and trades
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Dr Maya Puspa Rahman
Date Deposited:	02 Nov 2020 12:29
Last Modified:	12 Nov 2020 10:54
URI:	http://irep.iium.edu.my/id/eprint/84258

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