Jurnal Magister Ekonomi Syariah
Vol. 3 No. 2 Desember (2024): J-MES: Jurnal Magister Ekonomi Syariah

Do ESG Performance Improve Bank Stability: Comparative Analysis Islamic vs Conventional Bank

Irsyad, Muhammad (Unknown)
Chairiyati, Fauziah (Unknown)
Rachmadi, Erfan (Unknown)



Article Info

Publish Date
30 Apr 2025

Abstract

This research examines the impact of ESG on the stability of conventional banks and Islamic banks in Indonesia and Malaysia. Using panel data from 140 conventional banks and 27 Islamic banks from 2014-2023, we found that ESG performance has a significantly positive impact on bank stability. The research results indicate that ESG significantly affects the stability of both Islamic and conventional banks. Furthermore, the research results also indicate that the environmental pillar has a more significant impact on the stability of conventional banks and the social pillar has a more significant impact on the stability of Islamic banks. The results of this research can be utilized by stakeholders to pay more attention to ESG performance as an effort to maintain the long-term stability of both conventional and Islamic banks.

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Journal Info

Abbrev

jmes

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Magister Ekonomi Syariah is published by Program Studi Magister Ekonomi Syariah, Fakultas Ekonomi dan Bisnis Islam, Universitas Islam Negeri Sunan Kalijaga, Yogyakarta, Indonesia. This journal is designed to provide a forum for researchers or academicians and also practitioners who are ...