Financial stability in Indonesian Islamic banking using Z-Score: Before and during Covid-19

Moh Alfiyan (Universitas Ahmad Dahlan)
Rofiul Wahyudi (Universitas Ahmad Dahlan, Indonesia Universiti Tun Hussein Onn Malaysia)
Maimunah Binti Ali Maimunah (Universiti Tun Hussein Onn Malaysia)
Riduwan Riduwan (Universitas Ahmad Dahlan)

al-Uqud : Journal of Islamic Economics
Vol. 7 No. 1 (2023): January

This study aims to analyze the level of comparison of the financial stability of Islamic banking in the period before and during the Covid-19 pandemic. This study uses a paired T-test by taking samples of 13 Islamic Commercial Banks that publish financial reports regularly on the website of OJK in quarter I 2019 – quarter IV 2020. The results explain that Z-Score, BOPO, NPF, HHI, GDP and Inflation have no differences in the average level before pandemic compared to during the Covid-19 pandemic. Then FDR, Bank Size and BI Rate have differences in the average level before pandemic compared to during the Covid-19 pandemic. The results of the comparative analysis of the financial stability of Islamic banking before the Covid-19 pandemic compared to during the Covid-19 pandemic through the Z-Score analytical explained that Islamic banks were more stable before the pandemic, but still had good stability during the Covid-19 pandemic.