Journal of Finance and Islamic Banking
Vol. 8 No. 2 (2025)

Global Uncertainty in Moderating Macroeconomics on Banking Stability in Islamic Commercial Banks in Indonesia

Putri Anggraeni, Novita (Unknown)
Nurasri Sudarmawan, Barianto (Unknown)



Article Info

Publish Date
06 Jan 2026

Abstract

Purpose: This study analyzes the role of the World Uncertainty Index (WUI) in moderating the influence of macroeconomic conditions namely GDP, inflation, and exchange rate on the stability of Islamic banking in Indonesia during 2015 Q1 – 2024 Q4. Method: A quantitative approach was used through multiple linear regression and Moderated Regression Analysis with 40 quarterly data from the Financial Services Authority, Trading Economics, and FRED. Stability was measured using Z scores. Results: Gross Domestic Product and inflation have a significant positive effect on stability with coefficients of β = 0.704421 and β = 0.191898, respectively. The exchange rate is not significant. The World Uncertainty Index has a significant negative effect with β = 18.74672. As a moderator, the World Uncertainty Index strengthens the effect of Gross Domestic Product and exchange rate and weakens the effect of inflation. The R-squared value of 0.771887 indicates a strong explanatory power of the model. Implications: The results of the study emphasize the need for adaptive macroprudential policies to maintain the stability of Islamic banking amid increasing global uncertainty. Originality: This study contributes by including global uncertainty as a moderating variable, thereby broadening the understanding of the determinants of Islamic banking stability.

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Journal Info

Abbrev

jfib

Publisher

Subject

Religion Economics, Econometrics & Finance Social Sciences

Description

Journal of Finance and Islamic Banking is a peer reviewed journal that is published by the Sharia Banking Department of UIN Raden Mas Said Surakarta in collaboration with the scholars association Ikatan Ahli Ekonomi Islam, published biannually in June and December. This journal publishes current, ...