Islamic Review : Jurnal Riset dan Kajian Keislaman
Vol 12 No 1 (2023): April 2023

The Effect of Macroeconomics Variables on Islamic Bank Stability During COVID-19 Pandemic: Evidence From Indonesia

Ikrima Hamda (UIN Maulana Malik Ibrahim Malang)
Barianto Nurasri Sudarmawan (Unknown)



Article Info

Publish Date
08 Apr 2023

Abstract

Research explores the impact of COVID-19 on banking has been carried out by previous researchers in the last two years. However, there are no researchers who specifically discuss about banking stability during the COVID-19 pandemic which is related to macroeconomic relaxation during the COVID-19 pandemic. The purpose of this research was to explore the macroeconomic influence on banking stability during COVID-19 in anticipation of a similar shock. This study uses Ordinary Least Square (OLS) method to describe macroeconomic factors as independent variables and control variables on the z-score as the dependent variable. The results of the study showing the GDP variable has a significant negative effect, while the BI Rate and Exchange Rate variables have a significant positive effect on the stability of Islamic banking during the COVID-19 pandemic. As well as inflation and JUB variables show insignificant results. This finding implies that macroeconomics has an influence on bank stability so when the macroeconomic have shock, the government is required to make right strategy, either in the form of comprehensive policies, to maintain bank stability. These findings established the Government has succeeded in adopting several policies that have proven effective in running the economy which have an impact on bank stability during COVID-19 pandemic.

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Journal Info

Abbrev

islamicreview

Publisher

Subject

Arts Humanities Economics, Econometrics & Finance Education Law, Crime, Criminology & Criminal Justice Social Sciences

Description

Islamic Review merupakan jurnal yang diterbitkan oleh Institut Pesantren Mathali'ul Falah (IPMAFA) Pati yang sebelumnya bernama Sekolah Tinggi Mathali’ul Falah Pati (STAIMAFA). Jurnal Islamic Review ini disingkat dengan “IR”. Dengan hadirnya jurnal “IR” ini diharapkan ...