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Financial Inclusion Role of Sharia Banking to Strengthening Financial Stability
The growth of account ownership and financing of MSMEs helps banks to manage the financial inclusion for the community. This study examines the relationship of financial inclusion of Sharia Banking and financial stability. Furthermore, the study describes financial inclusion proxied by the outstanding ratio of financing of MSME, and the financial stability is measured by Gross Domestic Product growth (GDP’s growth). Samples include financial data of 5 sharia banks during the study period from 2011 to 2016 were analyzed using panel regression test. The result of study finds that financial inclusion as one determinant for strengthening financial stability which MSMEs financing of sharia banking in Indonesia has impact to GDP’s.