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The impact of Covid-19 on the banking industry efficiency: Comparison between Indonesia and Malaysian banks Riani, Ririn; Ikhwan, Ihsanul
Asian Journal of Islamic Management (AJIM) VOLUME 4 ISSUE 1, 2022
Publisher : Faculty of Business & Economics, Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/AJIM.vol4.iss1.art4

Abstract

Purpose − This study aims to measure and compare the efficiency of Islamic and conventional banks in Indonesia and Malaysia, from 2015 to 2020.Methodology − Data Envelopment Analysis (DEA) was employed as a research method for measuring efficiency. The DEA results are also used to identify input or output variables that must be improved if the Decision-Making Unit (DMU) needs to improve efficiency in form of potential improvement.Findings − This study shows that Covid-19 had an impact on decreasing the efficiency level of Indonesian and Malaysian Banks. This study also shows that Indonesian Banks are relatively efficient compared to Malaysian Banks. Nevertheless, Islamic bank is more affected by Covid-19 compared to conventional. In addition, the most important variable performance to be improved by banks during the Covid-19 pandemic is total financing.Implication − It can be used as a guideline for both nations to improve their shortcomings in each type of bank and to strengthen the banking system during economic downturns in order to speed up the recovery process.Originality − This is the initial study to examine the banking efficiency of Indonesia and Malaysia during the covid pandemic-induced economic crisis. As a result, it is expected to capture the impact of the covid-19 epidemic on banking efficiency.
An Effort to Increase Zakat Awareness: The Role of Public Figures Zaenal, Muhammad Hasbi; Susianti, Meis Winih; Ikhwan, Ihsanul; Adiningshih, Siti Maulida
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah Vol. 16 No. 1 (2024)
Publisher : UNIVERSITAS ISLAM NEGERI SYARIF HIDAYATULLAH JAKARTA

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15408/aiq.v16i1.39202

Abstract

This research aims to analyze the influence of public figures on the intention to pay zakat. The variables adopted in this research are variables related to the characteristics of public figures: trustworthiness, attractiveness, and expertise. This study succeeded in collecting primary data from 216 respondents which were then analyzed using the Structural Equation Modeling (SEM) method. This research shows that the variables trustworthiness, attractiveness, and expertise positively and significantly influence the intention to pay zakat. Based on the results, zakat institutions are expected to select reliable public figures who can be trusted by the community, have an appeal to the community, and have a good understanding and competence about zakat.Abstrak:Penelitian ini bertujuan untuk menganalisis pengaruh public figures terhadap intensi membayar zakat. Variabel yang diadopsi dalam penelitian ini merupakan variabel yang terkait dengan karakteristik public figures yakni variabel trustworthiness, attractiveness, dan expertise. Studi ini berhasil mengumpulkan data primer dari 216 responden yang selanjutnya dianalisis dengan menggunakan metode Structural Equation Modeling (SEM). Hasil penelitian ini menunjukkan bahwa variabel trustworthiness, attractiveness, dan expertise secara positif signifikan memengaruhi intensi membayar zakat. Berdasarkan hasil penelitian ini, badan/lembaga zakat diharapkan dapat memilih public figures yang dapat diandalkan serta dapat dipercaya oleh masyarakat, memiliki daya tarik bagi masyarakat, serta memiliki pemahaman dan kompetensi yang baik tentang zakat.
Efficiency Comparison between Conventional and Islamic Rural Banks in Sumatra during the COVID-19 Pandemic Akbar, Nashr; Ikhwan, Ihsanul; Riani, Ririn
Muslim Business and Economics Review Vol. 2 No. 2 (2023)
Publisher : Universitas Islam Internasional Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56529/mber.v2i2.185

Abstract

This study aims to examine and compare the efficiency of conventional rural banks and Islamic rural banks in their roles as intermediary institutions during the COVID-19 pandemic in Sumatra, Indonesia. Furthermore, the efficiency determinants were further analysed to find some variables that affect rural banks’ efficiency. Non-Parametric approach, Data Envelopment Analysis (DEA), and Tobit Regression are employed in this study. The results show that Islamic rural banks have better efficiency performance compared to conventional rural banks, but that there is a fluctuating efficiency trend experienced by both types of rural banks during the observation period. In addition, the potential improvement result indicates that financing and operating revenue variables are the main causes of rural bank inefficiency. Furthermore, the Tobit Regression result finds that capital and bank size significantly improve the efficiency level, but that risk significantly reduces bank efficiency.
Bank Stability and Market Concentration: A Strategic Balance or an Inherent Risk in Indonesia? Riani, Ririn; Ikhwan, Ihsanul
Islamic Economics Methodology Vol. 4 No. 1 (2025): Islamic Economics Methodology
Publisher : SMART Insight

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58968/iem.v4i1.663

Abstract

This study aims to examine the impact of market concentration, internal bank characteristics, and selected macroeconomic variables on the stability of Indonesia's banking sector from 2015 to 2022, with a focus on the concentration-fragility and concentration-stability hypotheses. The research employs a sample of 47 commercial banks, including both conventional and Islamic banks, and uses the System Generalized Method of Moments (Sys-GMM) for empirical analysis. The results support the concentration-fragility hypothesis, indicating that increased market concentration negatively affects financial stability. Additionally, the study finds that lagged bank stability, profitability (ROA), capital adequacy (ETA), and operational efficiency (CIR) significantly contribute to current stability, while high Non-Performing Loans (NPLs) positively impact stability when risk management practices are effective. The findings are based on data from 2015 to 2022 and may not fully capture the long-term effects of market concentration on bank stability. Future studies should explore other emerging factors affecting banking stability. The study provides valuable insights for policymakers by emphasising the importance of regulatory frameworks that foster competition and strengthen internal controls to mitigate systemic risks.
The Ricardian Equivalence in Times of Covid-19: A Case of Indonesia and Malaysia Pamuncak, Mohammad Bintang; Karimah, Diva Azka; Ikhwan, Ihsanul
Jurnal Dinamika Ekonomi Pembangunan Vol 8, No 1 (2025)
Publisher : Fakultas Ekonomika dan Bisnis, Universitas Diponegoro

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14710/jdep.8.1.51-65

Abstract

This study aims to seek the validity of Ricardian equivalence in Indonesia and Malaysia using Autoregressive Distributed Lag (ARDL). This study finds the invalidity of Ricardian equivalence in the long-term and short-term in both countries. For Indonesia case, during the last three financial crisis happens in 1998, 2008, and 2020 caused by COVID-19, Ricardian equivalence happens only in 1998. More interestingly, this study finds that there is a different relationship between household savings and household expenditure in Indonesia and Malaysia. This study is expected to contribute to the development of body of knowledge, particularly with the case of Ricardian equivalence and Keynes approaches on expansionary fiscal policy as well as practical public policy, particularly related to government budget in crisis and household saving and expenditure.