Capital, Efficiency, Management Risk on Islamic Bank Stability During Covid-19 PandemiC
The performance of the banking sector in one period is one of the indicators in encouraging financial stability in a country. Banking stability is reflected by healthy conditions and a well-run intermediation function. The purpose of this study is to see the impact of the Covid-19 pandemic shock in the short and long term which affects capital, efficiency, and management risk on the stability of Islamic banking in Indonesia. Analysis of this study using quantitative methods based on the Vector Error Correction Model (VECM). Empirically, the results of this study show that the CAR, BOPO, and FDR variables are significantly positively correlated to the stability of Islamic banks in the long term. Meanwhile, the NOM and NPF variables in length are negatively correlated with the stability of Islamic banks during the Covid-19 pandemic. In the short term the significant influential variables are NOM and FDR while the other variables have no effect. This shows that the Covid-19 pandemic shows an impact on bank stability in the future. This research proves that during the Covid-19 Pandemic, Islamic banks have succeeded in taking several policies in the form of financing restructuring which have proven effective in maintaining islamic banking stability.
Copyright (c) 2023 Author and Publisher
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Tazkia Islamic Finance and Business Review (TIFBR) is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website), as it can lead to productive exchanges, as well as earlier and greater citation of published work (See the Effect of Open Access).