How Islamic Bank Managing Risk? An Emphasis on Anticipating Financial Crisis

How Islamic Bank Managing Risk? An Emphasis on Anticipating Financial Crisis

The global economic crisis in 2008 shocked and pressured Indonesian macroeconomic and financial system stability. The decline in macroeconomic stability has an impact on banking policy in lending. Most banks in the world respond to the crisis by doing credit rationing, but how about Islamic bank res...

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Bibliographic Details
Main Authors: Sebastiana Viphindrartin, Zainuri Zainuri, Muhammad Zilmi Anugrah
Format: Article
Language:Indonesian
Published: Universitas Negeri Surabaya 2020-07-01
Series:al-Uqud: Journal of Islamic Economics
Subjects:
macroeconomic variable
financing
svar
pro-cyclical
Online Access:https://journal.unesa.ac.id/index.php/jie/article/view/5777
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spelling doaj-3776500598ae476693568f1db30e6c412020-12-18T06:51:08ZindUniversitas Negeri Surabayaal-Uqud: Journal of Islamic Economics2549-08502548-35442020-07-014220821710.26740/al-uqud.v4n2.p208-2173177How Islamic Bank Managing Risk? An Emphasis on Anticipating Financial CrisisSebastiana Viphindrartin0Zainuri Zainuri1Muhammad Zilmi Anugrah2Department of Economics, Faculty of Economics and Business, Universitas JemberDepartment of Economics, Faculty of Economics and Business, Universitas JemberDepartment of Economics, Faculty of Economics and Business, Universitas JemberThe global economic crisis in 2008 shocked and pressured Indonesian macroeconomic and financial system stability. The decline in macroeconomic stability has an impact on banking policy in lending. Most banks in the world respond to the crisis by doing credit rationing, but how about Islamic bank response toward this condition in Indonesia? Therefore, this study aims to examine the effect of Capital Adequacy Ratio (CAR) and macroeconomic variables on the amount of Islamic banking financing in Indonesia. The method used in this study is the SVAR (Structural Vector Auto Regression) analysis method. The results showed that inflation, capital, and CAR variables had a significant effect on Islamic bank’s financing amount. In contrast, GDP had no significant impact on Islamic bank’s financing amount which means that Islamic banking in Indonesia was not implemented pro-cyclical based lending policy.https://journal.unesa.ac.id/index.php/jie/article/view/5777macroeconomic variablefinancingsvarpro-cyclical
collection DOAJ
language Indonesian
format Article
sources DOAJ
author Sebastiana Viphindrartin
Zainuri Zainuri
Muhammad Zilmi Anugrah
spellingShingle Sebastiana Viphindrartin
Zainuri Zainuri
Muhammad Zilmi Anugrah
How Islamic Bank Managing Risk? An Emphasis on Anticipating Financial Crisis
al-Uqud: Journal of Islamic Economics
macroeconomic variable
financing
svar
pro-cyclical
author_facet Sebastiana Viphindrartin
Zainuri Zainuri
Muhammad Zilmi Anugrah
author_sort Sebastiana Viphindrartin
title How Islamic Bank Managing Risk? An Emphasis on Anticipating Financial Crisis
title_short How Islamic Bank Managing Risk? An Emphasis on Anticipating Financial Crisis
title_full How Islamic Bank Managing Risk? An Emphasis on Anticipating Financial Crisis
title_fullStr How Islamic Bank Managing Risk? An Emphasis on Anticipating Financial Crisis
title_full_unstemmed How Islamic Bank Managing Risk? An Emphasis on Anticipating Financial Crisis
title_sort how islamic bank managing risk? an emphasis on anticipating financial crisis
publisher Universitas Negeri Surabaya
series al-Uqud: Journal of Islamic Economics
issn 2549-0850
2548-3544
publishDate 2020-07-01
description The global economic crisis in 2008 shocked and pressured Indonesian macroeconomic and financial system stability. The decline in macroeconomic stability has an impact on banking policy in lending. Most banks in the world respond to the crisis by doing credit rationing, but how about Islamic bank response toward this condition in Indonesia? Therefore, this study aims to examine the effect of Capital Adequacy Ratio (CAR) and macroeconomic variables on the amount of Islamic banking financing in Indonesia. The method used in this study is the SVAR (Structural Vector Auto Regression) analysis method. The results showed that inflation, capital, and CAR variables had a significant effect on Islamic bank’s financing amount. In contrast, GDP had no significant impact on Islamic bank’s financing amount which means that Islamic banking in Indonesia was not implemented pro-cyclical based lending policy.
topic macroeconomic variable
financing
svar
pro-cyclical
url https://journal.unesa.ac.id/index.php/jie/article/view/5777
work_keys_str_mv AT sebastianaviphindrartin howislamicbankmanagingriskanemphasisonanticipatingfinancialcrisis
AT zainurizainuri howislamicbankmanagingriskanemphasisonanticipatingfinancialcrisis
AT muhammadzilmianugrah howislamicbankmanagingriskanemphasisonanticipatingfinancialcrisis
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