Analysis of islamic banking financial performance before, during and after global financial crisis

Muhammad, Rifqi; Triharyono, Condro

doi:10.20885/jeki.vol5.iss2.art5

Cited by 14 publications

(11 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…These results are consistent with the research of (Sutrisno et al, 2020); (Azmi et al, 2021); (Siswantoro, 2022); Utami and Makhrus (2022);and Sugiharto et al (2021), who also found that there was no difference in the NPF ratio before and during the Covid-19 Pandemic. However, this result opposes Rifqi & Condro (Muhammad & Triharyono, 2019), who found a difference in NPF before, during, and after the global financial crisis of 2008. It is due to government policies related to financing relaxation, such as lowering interest rates and delaying installment payments as stipulated by the Financial Services Authority Regulation No.…”

Section: Credit Riskcontrasting

confidence: 86%

Are Islamic Banks Still Sound Amidst Pandemic?

Canggih

Nurafini²,

Suryaningsih³

et al. 2022

View full text Add to dashboard Cite

The paper aims to check whether Islamic banks in Indonesia remain sound amid the Covid-19 Pandemic by comparing the soundness levels of Islamic commercial banks before and during the Covid-19 Pandemic. This research used a quantitative approach with the non-parametric Wilcoxon Signed-Rank Test to compare bank soundness before and during the Covid-19 Pandemic. The bank's resilience was measured using the Risk-Based Bank Rating (RBBR), e.g., Non-Performing Finance (NPF), Finance to Deposit Ratio (FDR), Capital Adequacy Ratio (CAR), and Net Operating Margin (NOM). The study exempted aspects of Good Corporate Governance since it is qualitative. The study used quarterly data in 2018-2019 (before the pandemic) and 2020-2021 (during the pandemic). The results showed a significant difference between CAR before and during the Covid-19 Pandemic. Meanwhile, NPF, FDR, ROA, and NOM showed no significant differences before and during the Covid-19 Pandemic. Based on the results, it can be concluded that the Covid-19 Pandemic generally does not affect the Islamic banks' soundness level, except for capital. It showed that the Islamic Bank proved to be resilient against crises. The study adds literature on the resilience of Islamic banks, particularly during the Covid-19 Pandemic, and validates the RBBR measurement to analyze the bank's soundness. In addition, the results of this study are also expected to be a consideration for policymakers to design the right policies for optimizing Islamic banks to thrive and support post-pandemic recovery.

show abstract

Section: Credit Riskcontrasting

confidence: 86%

Are Islamic Banks Still Sound Amidst Pandemic?

Canggih

Nurafini²,

Suryaningsih³

et al. 2022

View full text Add to dashboard Cite

show abstract

“…The impact of the economic crisis on Islamic banking has been analyzed by several previous researchers (Miniaoui & Gohou, 2013;Al-Deehani, El-Sadi, & Al-Deehani., 2015;dan Alqahtani., 2016). Muhammad & Triharyono, (2019) and Wahab N., Rosman R., (2017). They conducted research to determine the effect of the economic crisis on the performance of Islamic banks such as capital (CAR), NPF, profitability, and FDR.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Covid-19 Pandemic on the Performance of Islamic Bank in Indonesia

Sutrisno

Panuntun

Adristi

2020

EQU

View full text Add to dashboard Cite

The Corona Virus Diseases (Covid-19) pandemic that hit the world resulted in a decline in the performance of most companies, including reducing the performance of the world economy. The pandemic has changed human behavior so that it needs adaptation to new habits. Banking as a business group was also affected because the decline in company performance had an effect on the decline in banks, including Islamic banks. The purpose of this study is to examine the impact of the Covid-19 pandemic on the performance of Islamic banks in Indonesia. The performance of Islamic bank consist of capital adequacy ratio (CAR), non-performing financing (NPF), profitability as measured by return on assets (ROA), return on equity (ROE), and net operating margin (NOM)., operating expenses to operating income ratio (OEIR) and financing to deposit ratio (FDR). The population in this study were 13 Islamic commercial banks operating in Indonesia. From this population 12 banks were taken as samples and one bank was not taken because the data were incomplete. The data is taken quarterly, namely 4 quarters before the pandemic and 3 quarters during the pandemic. To test the hypothesis, the independent sample t-test was used. The results showed that the profitability as measured by ROE and NOM has a significant effect, as well as the financing to deposit ratio is also significantly different. Meanwhile, CAR, NPF, ROA, and OEIR were not affected by the Covid-19 pandemic

show abstract

“…The cost to income ratio is crucial especially for participation banks since they are found as less cost efficient than conventional banks in the countries where both banks operates in the same banking sector [58]. 10 Asset growth is found as statistically significant indicator and decreasing value of this variable increases the fragility of the participation banks. As Al-Kayed et al [59] investigate, optimal asset growth has a positive impact on the performance of the participation banks.…”

Section: Tablementioning

confidence: 99%

“…The breakdown of 2008 also triggered the efforts to investigate the impact of banking crisis on participation banks. However, most of these efforts aim to compare the impact of the crisis on participation banks and conventional banks, or investigate the performance of participation banks before/during/after the global financial crisis [7][8][9][10]. Despite those attempts, there is no prior study investigates the early warning indicators of banking fragilities of participation banks.…”

Section: Introductionmentioning

confidence: 99%

Indicators of Banking Fragility of Participation Banks in Turkey

Emin¹

2022

Macroeconomic Analysis for Economic Growth

View full text Add to dashboard Cite

This study examines the significant variables of banking fragility of participation banks in Turkey. For this aim, a model is constructed by employing probit model over the time period 2008 and 2018. The results suggest that asset growth, capital adequacy ratio, financing to total deposits ratio (FDR), return on asset and cost to income ratio are significant banking level indicators of the banking fragility of participation banks in Turkey.

show abstract

Analysis of islamic banking financial performance before, during and after global financial crisis

Cited by 14 publications

References 13 publications

Are Islamic Banks Still Sound Amidst Pandemic?

Are Islamic Banks Still Sound Amidst Pandemic?

The Effect of Covid-19 Pandemic on the Performance of Islamic Bank in Indonesia

Indicators of Banking Fragility of Participation Banks in Turkey

Contact Info

Product

Resources

About