Yos Karimudin
Universitas Sriwijaya, Indonesia

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MEDIA SENTIMENT AND RISK EXPOSURE: COMPARATIVE INSIGHTS FROM ISLAMIC AND CONVENTIONAL BANKS IN INDONESIA Ahmad Syathiri; Suhel Suhel; Yos Karimudin
TRIKONOMIKA Vol 25 No 1 (2026): June Edition
Publisher : Faculty of Economics and Business, University of Pasundan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23969/trikonomika.v25i1.42008

Abstract

This study examines how economic and political media sentiment influences risk mitigation policies in Islamic and conventional banks in Indonesia. Using monthly banking data from 2012 to 2023 and content analysis of online news, the study applies regression analysis to assess the effects of media sentiment on capital adequacy, loan distribution, and loan loss reserves. The findings show that economic media sentiment significantly affects banks’ capital strength, lending behavior, and provisioning policies, whereas political media sentiment has no significant influence on risk management decisions. The results indicate that banks respond more strongly to economic narratives than political discourse when developing risk and credit strategies. This study contributes to the banking and finance literature by providing comparative evidence from a dual-banking system and highlighting the importance of incorporating economic media sentiment into risk management and financial stability frameworks.