Multicience
Vol. 3 No. 03 (2022): INTERNATIONAL JOURNAL OF MULTISCIENCE - SEPTEMBER - DESEMBER 2022 EDITION

FINANCING GROWTH AND ITS RISKS IN ISLAMIC BANKING IN INDONESIA, MALAYSIA AND BAHRAIN

AJI KURNIAWAN (Master Program in Economics, Faculty of Business and Economics, Universitas Islam)
AHMAD TOHIRIN (Master Program in Economics, Faculty of Business and Economics, Universitas Islam)



Article Info

Publish Date
09 Dec 2022

Abstract

Purpose-This study aims to analyze financing growth and other factors that affect the risk and stability of Islamic banks in Indonesia, Malaysia and Bahrain. Methodology-This study uses a quantitative approach with a dynamic panel type that uses the Generalized Method of Moment (GMM) method to analyze the impact of financing growth and the factors that affect financing risk and the stability of Islamic banks. Findings-The results showed that faster growth in Islamic bank financing increased non-performing financing which resulted in losses and worsened the stability of Islamic banks. Variables of Capital and Size of the bank moderate the growth of financing which increases the non-performing financing of Islamic Banks. Furthermore, profitability describes the level of efficiency which indicates the low financing risk faced. Implication-These results imply that the growth of Islamic bank financing needs more regulationfurther by strengthening financing risk management as long as financing demand and financing growth increase,by the application of Prudential Banking principles, it is necessary to minimize financing risk and maintain Islamic Bank Stability. Originality-Research on the impact of financing growth on the risk and stability of Islamic banks is still limited. Therefore, this research will contribute to financing growth and the factors that affect the risk and stability of Islamic banks.

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Journal Info

Abbrev

ijm

Publisher

Subject

Arts Humanities Biochemistry, Genetics & Molecular Biology Computer Science & IT Economics, Econometrics & Finance Education Environmental Science Industrial & Manufacturing Engineering Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Library & Information Science Mathematics Public Health Social Sciences Other

Description

The principle reason for INTERNATIONAL JOURNAL OF MULTISCIENCE is to give an academic discussion to the world, over to share great learning. It expects to be the voice of scholars around the world. One of its establishing standards is that of backing of the scholastic research field. The ...