The Influence of Capital, Sensitivity, Diversification, Competition and Pandemic on Stability of Islamic Banking
DOI:
https://doi.org/10.35896/jse.v6i1.669Keywords:
Stability, Capital, Sensitivity, Diversification, PandemicAbstract
Banking stability is an essential factor to measure the level of bank health. This study aims to determine the factors that influence the level of stability of Islamic Banking during the COVID-19 pandemic. ZScore provides bank stability measurement. This study uses the panel data regression analysis method with the OLS approach. Data are taken from the financial statement release of Islamic commercial banks from the first quarter of 2018 to the fourth quarter of 2022, using a purposive sampling technique and processed with E-Views 10 statistical application. The number of sampled banks was 10 banks from 13 populations. The panel data regression processing result concluded that the capital variable significantly positively affects bank stability. The sensitivity, diversification, competition, and pandemic variables do not significantly affect bank stability.
References
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Albaity, M., Mallek, R. S., & Noman, A. H. M. (2019). Competition and Bank Stability in the MENA Region: The Moderating Effect of Islamic Versus Conventional Banks. Emerging Markets Review, 38(June 2018), 310–325. https://doi.org/10.1016/j.ememar.2019.01.003
Almunawwaroh, M., & Marliana, R. (2018). Pengaruh CAR, NPF, dan FDR terhadap Profitabilitas Bank Syariah di Indonesia. Amwaluna: Jurnal Ekonomi Dan Keuangan Syariah, 2(1), 1–17. https://doi.org/10.29313/amwaluna.v2i1.3156
Anggraeni, A., & Saputri, I. A. (2020). Diversifikasi Aset, Risiko Bank, Ukuran Bank, dan Likuiditas Bank terhadap Efisiensi Bank Syariah di Indonesia. Journal of Business and Banking, 10(1), 129–149. https://doi.org/10.14414/jbb.v10i1.2182
Anjom, W., & Faruq, A. T. M. O. (2023). Financial Stability Analysis of Islamic Banks in Bangladesh. European Journal of Business and Management Research, 8(3), 320–326. https://doi.org/10.24018/ejbmr.2023.8.3.1953
Aryani, H. F., & Bestari, R. (2021). Studi Komparatif Diversifikasi Aset, Pertumbuhan Aset, ROA pada Bank Konvensional dan Syariah. Media Ilmiah Akuntansi, 9(2), 159–168.
Aulia, R. M., & Rani, L. N. (2021). The Effect of Financial Performa and Efficiency on the Rate of Return of Mudharabah DEPOSITS in Sharia Commercial Banks. Jurnal Ekonomi Syariah Teori Dan Terapan, 8(1), 1–7. https://doi.org/10.20473/vol8iss20211pp1-7
Azmi, W., Ali, M., Arshad, S., & Rizvi, S. A. R. (2019). Intricacies of Competition, Stability, and Diversification: Evidence from Dual Banking Economies. Economic Modelling, 83, 111–126. https://doi.org/10.1016/j.econmod.2019.02.002
Basuki, A. T., & Yuliadi, I. (2014). Electronic Data Processing (SPSS 15 dan EViews 7). In Danisa Media (Vol. 1). http://repository.umy.ac.id/handle/123456789/2054?show=full
Bikker, J., & Bos, J. W. B. (2008). Bank Performance: A Theoretical and Empirical Framework for the Analysis of Profitability, Competition and Efficiency. In Taylor & Francis e-Library (Issue November). https://doi.org/10.4324/9780203030899
Darwis. (2019). Manajemen Asset dan Liabilitas (1st ed.). Trust Media Publishing.
Ekananda, M. (2015). Ekonometrika Dasar (1st ed.). Mitra Wacana Media.
Elnahass, M., Trinh, V. Q., & Li, T. (2021). Global Banking Stability in The Shadow of Covid-19 Outbreak. Journal of International Financial Markets, Institutions and Money, 72, 101322. https://doi.org/10.1016/j.intfin.2021.101322
Fadli, J. A. (2019). Should Bank Diversify Their Income and Credit ? Evidence from Indonesia Banking Industry. Kinerja, 23(1), 28–41.
Fang, J., Lau, C. M., Lu, Z., Tan, Y., & Zhang, H. (2019). Bank Performance in China: A Perspective from Bank Efficiency, Risk-Taking and Market Competition. Pacific-Basin Finance Journal, 56(February), 290–309. https://doi.org/10.1016/j.pacfin.2019.06.011
Ganefi, H. S., Ermawati, W. J., & Hakim, D. B. (2021). Market Structure , Income Diversity , and Stability : Empirical Study of Banking Industry Indonesia. 25(3), 701–716. https://doi.org/10.26905/jkdp.v25i3.5887
Ghozali, I., & Ratmono, D. (2020). Analisis Multivariat dan Ekonometrika: Teori, Konsep, dan Aplikasi dengan Eviews 10 (2nd ed.). Badan Penerbit Universitas Diponegoro.
Goetz, M. (2018). Competition and Bank Stability. Journal of Financial Intermediation, 35(559), 57–69. https://doi.org/10.1016/j.jfi.2017.06.001
Hasyim, F. (2021). Statistika Terapan untuk Bisnis dan Keuangan (1st ed.). Lintang Pustaka Utama.
Ichsan, R. N., Suparmin, S., Yusuf, M., Ismal, R., & Sitompul, S. (2021). Determinant of Sharia Bank’s Financial Performance during the Covid-19 Pandemic. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(1), 298–309. https://doi.org/10.33258/birci.v4i1.1594
Javaid, S., & Alalawi, S. (2018). Performance and Profitability of Islamic Banks in Saudi Arabia an Empirical Analysis. Asian Economic and Financial Review, 8(1), 38–51. https://doi.org/10.18488/journal.aefr.2018.81.38.51
Kamran, H. W., Omran, A., & Arshad, S. B. M. (2019). Risk Management, Capital Adequacy and Audit Quality for Financial Stability: Assessment from Commercial Banks of Pakistan. Asian Economic and Financial Review, 9(6), 654–664. https://doi.org/10.18488/journal.aefr.2019.96.654.664
Kasri, R. A., & Azzahra, C. (2020). Determinants of Bank Stability in Indonesia. Jurnal Ilmu Ekonomi, 9(2), 153–166. https://doi.org/10.15408/sjie.v9i2.15598
Ketaren, E. V., & Haryanto, A. M. (2020). Pengaruh Kinerja Keuangan terhadap Stabilitas Perbankan yang Terdaftar di Bursa Efek Indonesia. DIPONEGORO JOURNAL OF MANAGEMENT, 9(2), 1–13. http://ejournal-s1.undip.ac.id/index.php/dbr
Khoirunnisa, S. (2020). Kinerja Bank Syariah di Tengah Pandemi Covid-19 di Indonesia. Kumparan.Com. https://kumparan.com/safira-khoirunnisa/kinerja-bank-syariah-di-tengah-pandemi-covid-19-di-indonesia-1ulRoEgJsX7/full
Kim, H., Batten, J. A., & Ryu, D. (2020). Financial Crisis, Bank Diversification, and Financial Stability: OECD Countries. International Review of Economics and Finance, 65, 94–104. https://doi.org/10.1016/j.iref.2019.08.009
Miswanto, M., Christiana, T. H., & Syaflan, M. (2022). Pengaruh Kecukupan Modal, Risiko Kredit, Efisiensi Operasional, Likuiditas, Dan Kemampuan Pengelolaan Aset Produktif Terhadap Profitabilitas Perbankan. Jurnal Riset Manajemen, 9(2), 57–73. https://doi.org/10.32477/jrm.v9i2.460
Muhammad. (2017). Manajemen Dana Bank Syariah (Cetakan, 3). PT. Grafindo Persada.
Mulyani, E. L. (2020). Pengaruh Rasio Gap dan Valuta Asing terhadap Profitabilitas (Penelitian pada PT Bank Central Asia Tbk). BanKu: Jurnal Perbankan Dan Keuangan, 1(2), 107–113. https://doi.org/10.37058/banku.v1i2.2065
Nguyen, T. L. A. (2018). Diversification and Bank Efficiency in Six Asean Countries. Global Finance Journal, 37, 57–78. https://doi.org/10.1016/j.gfj.2018.04.004
Nugroho, C., Didin, F. R., & Wijaya, P. S. (2021). Analisis Kinerja 3 Saham Bank Syariah di Masa Pandemi Covid-19. Halal Research, 1(2), 74–86.
Putri, I. N. K., Rahim, R., & Alfarisi, M. F. (2022). Competition and Profitability: Impact on Stability in Indonesian Banking. JBTI : Jurnal Bisnis : Teori Dan Implementasi, 13(1), 51–61. https://doi.org/10.18196/jbti.v13i1.14309
Rakhmat, A. S., & Panuluh, P. (2021). Bagaimana Kompetisi, Efisiensi, Risiko Kredit, Likuiditas Dan Ukuran Perusahaan Mempengaruhi Kinerja Bank. IKRAITH-EKONOMIKA, 4(3).
Ryu, D., Webb, R. I., & Yu, J. (2020). Bank Sensitivity to International Regulatory Reform: The Case of Korea. Investment Analysts Journal, 49(2), 149–162. https://doi.org/10.1080/10293523.2020.1775989
Sari, N. N., & Sudarmawan, B. N. (2023). The Determinants of Bank Stability: An Empirical Investigation in Southeast Asia. Jurnal Ekonomi Syariah Teori Dan Terapan, 10(2), 109–122. https://doi.org/10.20473/vol10iss20232pp109-122
Shahriar, A., Mehzabin, S., Ahmed, Z., Döngül, E. S., & Azad, M. A. K. (2023). Bank Stability, Performance and Efficiency: an Experience from West Asian Countries. IIM Ranchi Journal of Management Studies, 2(1), 31–47. https://doi.org/10.1108/irjms-02-2022-0017
Suretno, S. (2020). Strategi Bank Mandiri Syariah dalam Menjaga Stabilitas Keuangan pada Masa Pandemi Covid-19. Ad-Deenar: Jurnal Ekonomi Dan Bisnis Islam, 4(2), 313–325.
Yunianti, L., & Nurdin, D. (2019). Pengaruh Manajemen Gap pada Assets and Liability Management terhadap Net Profit Margin Bank Syariah pada PT Bank Syariah Mandiri Periode 2015-2017. Prosiding Manajemen, 5(1).
Al-kayed, L. T., & Aliani, K. C. (2020). Effects of Focus Versus Diversification on Bank Risk and Return: Evidence from Islamic Banks Loan Portfolios. Journal of Islamic Accounting and Business Research, 11(9), 2155–2168. https://doi.org/10.1108/JIABR-10-2019-0192
Albaity, M., Mallek, R. S., & Noman, A. H. M. (2019). Competition and Bank Stability in the MENA Region: The Moderating Effect of Islamic Versus Conventional Banks. Emerging Markets Review, 38(June 2018), 310–325. https://doi.org/10.1016/j.ememar.2019.01.003
Almunawwaroh, M., & Marliana, R. (2018). Pengaruh CAR, NPF, dan FDR terhadap Profitabilitas Bank Syariah di Indonesia. Amwaluna: Jurnal Ekonomi Dan Keuangan Syariah, 2(1), 1–17. https://doi.org/10.29313/amwaluna.v2i1.3156
Anggraeni, A., & Saputri, I. A. (2020). Diversifikasi Aset, Risiko Bank, Ukuran Bank, dan Likuiditas Bank terhadap Efisiensi Bank Syariah di Indonesia. Journal of Business and Banking, 10(1), 129–149. https://doi.org/10.14414/jbb.v10i1.2182
Anjom, W., & Faruq, A. T. M. O. (2023). Financial Stability Analysis of Islamic Banks in Bangladesh. European Journal of Business and Management Research, 8(3), 320–326. https://doi.org/10.24018/ejbmr.2023.8.3.1953
Aryani, H. F., & Bestari, R. (2021). Studi Komparatif Diversifikasi Aset, Pertumbuhan Aset, ROA pada Bank Konvensional dan Syariah. Media Ilmiah Akuntansi, 9(2), 159–168.
Aulia, R. M., & Rani, L. N. (2021). The Effect of Financial Performa and Efficiency on the Rate of Return of Mudharabah DEPOSITS in Sharia Commercial Banks. Jurnal Ekonomi Syariah Teori Dan Terapan, 8(1), 1–7. https://doi.org/10.20473/vol8iss20211pp1-7
Azmi, W., Ali, M., Arshad, S., & Rizvi, S. A. R. (2019). Intricacies of Competition, Stability, and Diversification: Evidence from Dual Banking Economies. Economic Modelling, 83, 111–126. https://doi.org/10.1016/j.econmod.2019.02.002
Basuki, A. T., & Yuliadi, I. (2014). Electronic Data Processing (SPSS 15 dan EViews 7). In Danisa Media (Vol. 1). http://repository.umy.ac.id/handle/123456789/2054?show=full
Bikker, J., & Bos, J. W. B. (2008). Bank Performance: A Theoretical and Empirical Framework for the Analysis of Profitability, Competition and Efficiency. In Taylor & Francis e-Library (Issue November). https://doi.org/10.4324/9780203030899
Darwis. (2019). Manajemen Asset dan Liabilitas (1st ed.). Trust Media Publishing.
Ekananda, M. (2015). Ekonometrika Dasar (1st ed.). Mitra Wacana Media.
Elnahass, M., Trinh, V. Q., & Li, T. (2021). Global Banking Stability in The Shadow of Covid-19 Outbreak. Journal of International Financial Markets, Institutions and Money, 72, 101322. https://doi.org/10.1016/j.intfin.2021.101322
Fadli, J. A. (2019). Should Bank Diversify Their Income and Credit ? Evidence from Indonesia Banking Industry. Kinerja, 23(1), 28–41.
Fang, J., Lau, C. M., Lu, Z., Tan, Y., & Zhang, H. (2019). Bank Performance in China: A Perspective from Bank Efficiency, Risk-Taking and Market Competition. Pacific-Basin Finance Journal, 56(February), 290–309. https://doi.org/10.1016/j.pacfin.2019.06.011
Ganefi, H. S., Ermawati, W. J., & Hakim, D. B. (2021). Market Structure , Income Diversity , and Stability : Empirical Study of Banking Industry Indonesia. 25(3), 701–716. https://doi.org/10.26905/jkdp.v25i3.5887
Ghozali, I., & Ratmono, D. (2020). Analisis Multivariat dan Ekonometrika: Teori, Konsep, dan Aplikasi dengan Eviews 10 (2nd ed.). Badan Penerbit Universitas Diponegoro.
Goetz, M. (2018). Competition and Bank Stability. Journal of Financial Intermediation, 35(559), 57–69. https://doi.org/10.1016/j.jfi.2017.06.001
Hasyim, F. (2021). Statistika Terapan untuk Bisnis dan Keuangan (1st ed.). Lintang Pustaka Utama.
Ichsan, R. N., Suparmin, S., Yusuf, M., Ismal, R., & Sitompul, S. (2021). Determinant of Sharia Bank’s Financial Performance during the Covid-19 Pandemic. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(1), 298–309. https://doi.org/10.33258/birci.v4i1.1594
Javaid, S., & Alalawi, S. (2018). Performance and Profitability of Islamic Banks in Saudi Arabia an Empirical Analysis. Asian Economic and Financial Review, 8(1), 38–51. https://doi.org/10.18488/journal.aefr.2018.81.38.51
Kamran, H. W., Omran, A., & Arshad, S. B. M. (2019). Risk Management, Capital Adequacy and Audit Quality for Financial Stability: Assessment from Commercial Banks of Pakistan. Asian Economic and Financial Review, 9(6), 654–664. https://doi.org/10.18488/journal.aefr.2019.96.654.664
Kasri, R. A., & Azzahra, C. (2020). Determinants of Bank Stability in Indonesia. Jurnal Ilmu Ekonomi, 9(2), 153–166. https://doi.org/10.15408/sjie.v9i2.15598
Ketaren, E. V., & Haryanto, A. M. (2020). Pengaruh Kinerja Keuangan terhadap Stabilitas Perbankan yang Terdaftar di Bursa Efek Indonesia. DIPONEGORO JOURNAL OF MANAGEMENT, 9(2), 1–13. http://ejournal-s1.undip.ac.id/index.php/dbr
Khoirunnisa, S. (2020). Kinerja Bank Syariah di Tengah Pandemi Covid-19 di Indonesia. Kumparan.Com. https://kumparan.com/safira-khoirunnisa/kinerja-bank-syariah-di-tengah-pandemi-covid-19-di-indonesia-1ulRoEgJsX7/full
Kim, H., Batten, J. A., & Ryu, D. (2020). Financial Crisis, Bank Diversification, and Financial Stability: OECD Countries. International Review of Economics and Finance, 65, 94–104. https://doi.org/10.1016/j.iref.2019.08.009
Miswanto, M., Christiana, T. H., & Syaflan, M. (2022). Pengaruh Kecukupan Modal, Risiko Kredit, Efisiensi Operasional, Likuiditas, Dan Kemampuan Pengelolaan Aset Produktif Terhadap Profitabilitas Perbankan. Jurnal Riset Manajemen, 9(2), 57–73. https://doi.org/10.32477/jrm.v9i2.460
Muhammad. (2017). Manajemen Dana Bank Syariah (Cetakan, 3). PT. Grafindo Persada.
Mulyani, E. L. (2020). Pengaruh Rasio Gap dan Valuta Asing terhadap Profitabilitas (Penelitian pada PT Bank Central Asia Tbk). BanKu: Jurnal Perbankan Dan Keuangan, 1(2), 107–113. https://doi.org/10.37058/banku.v1i2.2065
Nguyen, T. L. A. (2018). Diversification and Bank Efficiency in Six Asean Countries. Global Finance Journal, 37, 57–78. https://doi.org/10.1016/j.gfj.2018.04.004
Nugroho, C., Didin, F. R., & Wijaya, P. S. (2021). Analisis Kinerja 3 Saham Bank Syariah di Masa Pandemi Covid-19. Halal Research, 1(2), 74–86.
Putri, I. N. K., Rahim, R., & Alfarisi, M. F. (2022). Competition and Profitability: Impact on Stability in Indonesian Banking. JBTI : Jurnal Bisnis : Teori Dan Implementasi, 13(1), 51–61. https://doi.org/10.18196/jbti.v13i1.14309
Rakhmat, A. S., & Panuluh, P. (2021). Bagaimana Kompetisi, Efisiensi, Risiko Kredit, Likuiditas Dan Ukuran Perusahaan Mempengaruhi Kinerja Bank. IKRAITH-EKONOMIKA, 4(3).
Ryu, D., Webb, R. I., & Yu, J. (2020). Bank Sensitivity to International Regulatory Reform: The Case of Korea. Investment Analysts Journal, 49(2), 149–162. https://doi.org/10.1080/10293523.2020.1775989
Sari, N. N., & Sudarmawan, B. N. (2023). The Determinants of Bank Stability: An Empirical Investigation in Southeast Asia. Jurnal Ekonomi Syariah Teori Dan Terapan, 10(2), 109–122. https://doi.org/10.20473/vol10iss20232pp109-122
Shahriar, A., Mehzabin, S., Ahmed, Z., Döngül, E. S., & Azad, M. A. K. (2023). Bank Stability, Performance and Efficiency: an Experience from West Asian Countries. IIM Ranchi Journal of Management Studies, 2(1), 31–47. https://doi.org/10.1108/irjms-02-2022-0017
Suretno, S. (2020). Strategi Bank Mandiri Syariah dalam Menjaga Stabilitas Keuangan pada Masa Pandemi Covid-19. Ad-Deenar: Jurnal Ekonomi Dan Bisnis Islam, 4(2), 313–325.
Yunianti, L., & Nurdin, D. (2019). Pengaruh Manajemen Gap pada Assets and Liability Management terhadap Net Profit Margin Bank Syariah pada PT Bank Syariah Mandiri Periode 2015-2017. Prosiding Manajemen, 5(1).
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2024-06-05
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The Influence of Capital, Sensitivity, Diversification, Competition and Pandemic on Stability of Islamic Banking. (2024). JOURNAL OF SHARIA ECONOMICS, 6(1), 60-76. https://doi.org/10.35896/jse.v6i1.669
