The Effect of Macroeconomics Variables on Islamic Bank Stability During COVID-19 Pandemic: Evidence From Indonesia
Keywords:
Islamic Bank, Bank Stability, Covid-19
Abstract
Research explores the impact of COVID-19 on banking has been carried out by previous researchers in the last two years. However, there are no researchers who specifically discuss about banking stability during the COVID-19 pandemic which is related to macroeconomic relaxation during the COVID-19 pandemic. The purpose of this research was to explore the macroeconomic influence on banking stability during COVID-19 in anticipation of a similar shock. This study uses Ordinary Least Square (OLS) method to describe macroeconomic factors as independent variables and control variables on the z-score as the dependent variable. The results of the study showing the GDP variable has a significant negative effect, while the BI Rate and Exchange Rate variables have a significant positive effect on the stability of Islamic banking during the COVID-19 pandemic. As well as inflation and JUB variables show insignificant results. This finding implies that macroeconomics has an influence on bank stability so when the macroeconomic have shock, the government is required to make right strategy, either in the form of comprehensive policies, to maintain bank stability. These findings established the Government has succeeded in adopting several policies that have proven effective in running the economy which have an impact on bank stability during COVID-19 pandemic.
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References
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Alshubiri, Faris Nasif. “Determinants of Financial Stability: An Empirical Study of Commercial Banks Listed in Muscat Security Market.” Journal of Business & Retail Management Research 11, no. 4 (August 1, 2017): 192–200.
Anindya, Arzi Prima, Fitrian Aprilianto, and Atut Frida Agustin. “Pengaruh Inflasi, BI Rate, dan Kurs Terhadap Profitabilitas (Roa) Bank Umum Syariah Di Indonesia Periode 2012 - 2020” . May 1 (2022).
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Bohl, Martin T., Philip Michaelis, and Pierre L. Siklos. “Austerity and Recovery: Exchange Rate Regime Choice, Economic Growth, and Financial Crises.” Economic Modelling 53 (February 2016): 195–207.
Cihak, Martin, and Heiko Hesse. “Islamic Banks and Financial Stability : An Empirical Analysis.” IMF Working Paper Series, no. 932 (2008).
Dwinanda, Ibnu Zakaria, and Chorry Sulistyowati. “The Effect of Credit Risk and Liquidity Risk on Bank Stability.” Jurnal Ilmu Ekonomi Terapan 6, no. 2 (November 29, 2021): 255.
Fahrial, F. “Peranan Bank Dalam Pembangunan Ekonomi Nasional.” Ensiklopedia of Journal 1, no. 1 (2018): 179–184.
Fatoni, Ahmad. “Pengaruh Ketidakpastian Ekonomi Terhadap Stabilitas Perbankan Syariah di Indonesia.” Jurnal Ilmiah Ekonomi Islam 8 (2022): 2903–2909.
Fatoni, Ahmad, and Sahabudin Sidiq. “Analisis Perbandingan Stabilitas Sistem Perbankan Syariah dan Konvensional Di Indonesia.” Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan dan Akuntansi 11, no. 2 (November 30, 2019): 179–198.
Ferdinandus, Stenly Jacobus, Reniati Reniati, and Hillary Theophani Parera. “Analysis Of Financial Performance Based On The Balanced Scorecard Method Before And During Covid-19 Pandemic At PT. Bank Tabungan Negara, TBK.” Integrated Journal Of Business And Economics (2022): 270–281.
Heniwati, Elok. “Studi Empiris Kekuatan Stabilitas Keuangan Perbankan Syariah di Indonesia.” Jurnal Ekonomi Bisnis dan Kewirausahaan 8, no. 2 (August 29, 2019): 147.
Ihsan, Yudi N. “Impact Of The Pandemic Covid-19 To The Indonesia Seas” (n.d.): 8.
Iskandar, Azwar, Bayu Taufiq Possumah, and Khaerul Aqbar. “Peran Ekonomi dan Keuangan Sosial Islam Saat Pandemi Covid-19” (n.d.): 14.
Khasanah, Umrotul, and Ahmad Tibrizi Soni Wicaksono. “Intermediary Performance of Islamic Banks in the Disruption Era: Does It Contribute to Economic Growth?” Banks and Bank Systems 16, no. 1 (2021): 103–115.
Khasawneh, Ahmad Y, and Husam Aldeen Al-Khadash. “Risk And Profitability In Middle East And North Africa Banking System: An Examination Of Off Balance Sheet Activities” 8, no. 3 (2014): 14.
Lassoued, N, H Sassi, M Ben, and R Attia. “The Impact of State and Foreign Ownership On Banking Risk: Evidence From The Mena Countries.” Research in International Business and Finance (2015).
Maritsa, Firna Hayyu Nindya, and Agus Widarjono. “Indonesian Islamic Banks and Financial Stability: An Empirical Analysis.” EkBis: Jurnal Ekonomi dan Bisnis 5, no. 1 (June 29, 2021): 71–87.
Ntarmah, A. H, Y Kong, and M. K Gyan. “Banking System Stability and Economic Sustainability: A Panel Data Analysis of the Effect of Banking System Stability on Sustainability of Some Selected Developing Countries.” Quantitative Finance and Economics 3 (4) (2019): 709.
Oktavianti, Elda, and Satria Tri Nanda. “Analisis Pengaruh CAR, NPF, BOPO, Inflasi, Produk Domestik Bruto dan Suku Bunga BI Terhadap Pertumbuhan Perbankan Syariah” 16, no. 1 (n.d.): 10.
Ozili, Peterson K. “Non-Performing Loans and Financial Development: New Evidence.” The Journal of Risk Finance 20, no. 1 (January 21, 2019): 59–81.
Rahmi, Hanifah, and Dewi Zaini Putri. “Analisis Efisiensi Perbankan Syariah Selama Krisis Global Di Indonesia.” Jurnal Kajian Ekonomi dan Pembangunan 1, no. 2 (July 9, 2019): 321.
Rashid, Abdul, Saba Yousaf, and Muhammad Khaleequzzaman. “Does Islamic Banking Really Strengthen Financial Stability? Empirical Evidence from Pakistan.” International Journal of Islamic and Middle Eastern Finance and Management 10, no. 2 (June 19, 2017): 130–148.
Riadi, Sukisno Selamet, Michael Hadjaat, and Rizky Yudaruddin. “Bank Concentration and Bank Stability during the COVID-19 Pandemic.” Emerging Science Journal 6 (September 7, 2022): 262–274.
Saputri, Oktoviana Banda. “Pengaruh indikator makroekonomi terhadap profitabilitas perbankan syariah di indonesia tahun 2015–2020” (2021).
Setiawan, Rahmat, and Ahmad Aziz Putra Pratama. “Modal, Tingkat Likuiditas Bank, NPL dan Pertumbuhan Kredit Perbankan Indonesia.” Matrik : Jurnal Manajemen, Strategi Bisnis dan Kewirausahaan (January 29, 2019): 96.
Siahaan, Daniel, and Nadia Asandimitra. “Pengaruh Likuiditas Dan Kualitas Aset terhadap Profitabilitas pada Bank Umum Nasional (Studi pada Bursa Efek Indonesia Periode 2010-2014).” BISMA (Bisnis dan Manajemen) 9, no. 1 (April 6, 2018): 1.
Sodiq, Amirus. “Analisis Pengaruh Inflasi, Produk Domestic Bruto dan Jumlah Uang Beredar Terhadap Return On Asset Bank Syariah.” EQUILIBRIUM 2 (2014): 208–225.
Soekapdjo, Soeharjoto, Debbie Aryani Tribudhi, and Lucky Nugroho. “Pengaruh Fundamental Ekonomi dan Kinerja Keuangan Terhadap Kredit Bermasalah Pada Bank Syariah Di Indonesia.” Ekonika : Jurnal ekonomi universitas kadiri 4, no. 2 (August 26, 2019): 126.
Sri Setiawati, Ririt Iriani. “Analisis Pengaruh Faktor-Faktor Fundamental Kinerja Bank dan Makro Ekonomi Terhadap Stabilitas Perbankan Di Indonesia.” Jurnal Ilmiah Bisnis dan Ekonomi Asia 14, no. 2 (August 8, 2020): 123–132.
Sudarmawan, Barianto Nurasri. “Sosio-Ekonomi Sebagai Faktor Non-Performing Financing pada Lembaga Keuangan Mikro Syariah.” El Dinar 10, no. 1 (April 14, 2022): 32–44.
Trad, Naama, Houssem Rachdi, Abdelaziz Hakimi, and Khaled Guesmi. “Banking Stability in the MENA Region during the Global Financial Crisis and the European Sovereign Debt Debacle.” The Journal of Risk Finance 18, no. 4 (August 21, 2017): 381–397.
Utami, H. W. “Analisa Pengaruh Sektor Perbankan Terhadap Pertumbuhan Ekonomi Indonesia Periode 2001–2015.” OECONOMICUS Journal of Economics 2 (2) (2018).
Wahyudi, Rofiul, Lu’liyatul Mutmainah, Faiza Husnayeni Nahar, Alam Adha, and Akhmad Arif Rifan. “Determinants of Profitability in Indonesian Islamic Banking: Case Study in the COVID-19 Period.” Integrated Journal Of Business And Economics (2021): 37–46.
Windarsari, Wiwin Riski, and Zainuddin S. “Analisis Kausalitas Stabilitas Perekonomian Terhadap Pengembangan Bank Syariah Menggunakan Pendekatan Vector Error Correction Model.” Al-Kharaj: Journal of Islamic Economic and Business 2, no. 1 (April 8, 2020): 1–15.
Wulandari, Bayu, and Ketryn Seviyani. “Pengaruh Loan To Deposit Ratio (LDR), Biaya Operasional, Pendapatan Operasional (BOPO), Kurs, Capital Adequacy Ratio, Ukuran Bank dan Inflasi Terhadap Non Performing Loan (NPL) Di Perusahaan Perbankan Terdaftar Di BEI.” . COSTING (2021): 8.
Published
2023-04-08
How to Cite
Hamda, I., & Sudarmawan, B. (2023). The Effect of Macroeconomics Variables on Islamic Bank Stability During COVID-19 Pandemic: Evidence From Indonesia. Islamic Review: Jurnal Riset Dan Kajian Keislaman, 12(1), 59-76. https://doi.org/https://doi.org/10.35878/islamicreview.v12i1.682
Section
Articles
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