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Sub-national banking regulation and financial inclusion: Evidence from Aceh, Indonesia

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

ACDE Seminar

Date & time

Tuesday 15 October 2024
2.00pm–3.30pm

Venue

Acton Theatre JG Crawford Building and Online Zoom

Speaker

Firman Witoelar Kartaadipoetra, Australian National University

This seminar investigates the effects of a new regulation introduced in 2018 in the province of Aceh, Indonesia, which requires all banks operating in the province – whether they are conventional or shariah banks – to adhere with the shariah principles. We constructed a synthetic control unit for Aceh based on other Indonesian provinces and apply the synthetic control and synthetic difference-in-difference methods to look at the effects of this regulation on banking service usages. Our preliminary findings suggest that the new regulation has led to a decrease in the disbursement of working capital loans and savings deposits in the treatment group (Aceh province) compared to the control group. The findings are consistent with the view that the regulation, which was aimed to improve access to finance to previously unbanked population, resulted in decreased utilization of modern financial services.

To join in-person:

Venue: Acton Theatre, JG Crawford Building, 132 Lennox Crossing, Acton 2602, ACT (ANU Crawford School of Public Policy)

To join online:

Please register to receive a Zoom link.

Updated:  8 October 2024/Responsible Officer:  Crawford Engagement/Page Contact:  CAP Web Team