<![CDATA[Purpose – This study aims to analyze the dynamics of the conversion of Nagari Bank into Sharia Nagari Bank, focusing on the forms and causes of potential failure. Method – This research employs a qualitative approach based on in-depth interviews with 19 informants who were directly and indirectly involved in the conversion policy, including regional stakeholders and decision-makers. The primary data are complemented by document analysis to capture regulatory, institutional, and socio-political contexts. The data are analyzed using a political economy framework to identify patterns of resistance, interests, and underlying motivations shaping the conversion process. Findings – The findings reveal that resistance to the conversion is significantly influenced by pragmatic political and economic concerns rather than normative or philosophical objections. Politically, several shareholders—particularly regional leaders—express concern that the conversion could enhance the electability and public image of political rivals in the 2024 elections. Economically, apprehensions center on the potential decline in dividends post-conversion. However, these concerns are not supported by robust quantitative evidence or empirical financial projections. Furthermore, the study finds a weakening role of traditional Minangkabau values as a guiding framework, indicating a shift from value-based decision-making toward interest-based calculation. Practical implications – The study highlights the need for transparent financial analysis and stronger integration of Islamic and customary values to enhance policy legitimacy and reduce resistance. Originality/value – This research offers a novel contribution by linking political economy with Islamic and customary frameworks, revealing the shift from value-based to interest-based decision-making in regional policy.]]>
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