1. Home
  2. KOMPARTEMEN, Vol. 21 No.2, September 2023
  3. Siyamto

Bank performance in achieving Islamic bank stability conditions: Evidence from Islamic Banks in Indonesia

Yudi Siyamto

Abstract


This study aims to analyze the effect of Islamic bank performance on Islamic bank stability in Indonesia. Research using monthly time series data from OJK Sharia Banking Statistics 2015-2022. The analytical tool uses ECM and ECT tests to test the long-term impact and short-term response of operational efficiency, liquidity and bank size on the stability of Islamic banks. The research results found that the performance of Islamic banks in terms of operational efficiency has a negative effect on the stability of Islamic banks in both the short and long term. Furthermore, liquidity has no effect on the stability of Islamic banks in the long term, but has a positive effect in the short term. While bank size has a positive effect on the stability of Islamic banks in the long term, it has no effect in the short term

Keywords


Operational Efficiency; Liquidity; Bank Size; Stability Islamic Bank

References


Adhamovna, B. G., Obrenovic, B., & Akhunjonov, U. (2014). Banking Competition and Stability: Comprehensive Literature Review. International Journal of Management Science and Business Administration, 2(6), 26–33.

Adusei, M., & Elliott, C. (2015). The impact of bank size and funding risk on bank stability. Cogent Economics & Finance, 3(1), 1–19.

Afiqoh, L., & Laila, N. (2018). Pengaruh Kinerja Keuangan Terhadap Risiko Kebangkrutan Bank Umum Syariah di Indonesia (Metode Altman Z-Score Modifikasi). Jurnal Ekonomi Dan Bisnis Islam, 4(2), 166–183.

Ahamed, M. M., & Mallick, S. K. (2017). Is financial inclusion good for bank stability? International evidence. Journal of Economic Behavior & Organization, 7(27), 1–53.

Ali, M., & Puah, C. H. (2019). The internal determinants of bank profitability and stability: An insight from banking sector of Pakistan. Management Research Review, 42(1), 49–67.

Anatolyevna, M. I., & Ramilevna, S. L. (2013). Financial Stability Concept: Main Characteristics and Tools. World Applied Sciences Journal, 22(6), 856–858.

Bank Indonesia. (2018). Penguatan SSK Dalam Upaya Menjaga Momentum Pertumbuhan. Kajian Stabilitas Keuangan, Maret (30), 1–228.

Bank Indonesia. (2022). Sinergi dan Inovasi Kebijakan Untuk Menjaga Stabilitas Sistem Keuangan dan Mendukung Pertumbuhan Ekonomi Nasional. Kajian Stabilitas Keuangan, September (39), 1–81.

Beck, T., Demirguc-Kunt, A., Laeven, L., & Levine, R. (2008). Finance, Firm Size, and Growth. Journal of Money, Credit and Banking, 40(7), 1379–1405.

Berger, A. N., Klapper, L. F., & Turk-Ariss, R. (2008). Publication: Bank Competition and Financial Stability. Policy Research Working Paper, WPS (4696).

Bikker, J. A., & Bos, J. W. B. (2008). Bank performance: A theoretical and empirical framework for the analysis of profitability, competition and efficiency. In Routledge International Studies in Money and Banking.

Christaria, F., & Kurnia, R. (2016). The Impact of Financial Ratios, Operational Efficiency and Non-Performing Loan Towards Commercial Bank Profitability. Accounting and Finance Review (AFR), 1(1), 43–50.

Cihak, M., & Hesse, H. (2008). Islamic Banks and Financial Stability: An Empirical Analysis. International Monetary Fund, 08(16), 1–29.

Davis, E. P. (2003). Towards A Typology for Systemic Financial Instability. Public Policy Discussion Papers Economics and Finance Section, 03(20), 1–23.

Diaconu, I.-R., & Oanea, D.-C. (2015). Determinants of Bank’s Stability. Evidence from CreditCoop. Procedia Economics and Finance, 32(15), 488–495.

Fatoni, A., & Sidiq, S. (2019). Analisis Perbandingan Stabilitas Sistem Perbankan Syariah Dan Konvensional di Indonesia. Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan Dan Akuntansi, 11(2), 179–198.

Hasan, M., & Dridi, J. (2010). The Effects of the Global Crisis on Islamic and Conventional Banks: A Comparative Study. International Monetary Fund, 10(201), 1–46.

Heniwati, E. (2019). Studi Empiris Kekuatan Stabilitas Keuangan Perbankan Syariah di Indonesia. Jurnal Ekonomi Bisnis Dan Kewirausahaan, 8(2), 147–160.

Istan, M., & Fahlevi, M. (2020). The Effect of External and Internal Factors on Financial Performance of Islamic Banking. Jurnal Ekonomi & Studi Pembangunan, 21(1), 137–145.

Ketaren, E. V., & Haryanto, A. M. (2020). Pengaruh Kinerja Keuangan Terhadap Stabilitas Perbankan Yang Terdaftar Di Bursa Efek Indonesia (Studi Kasus Pada Bank Yang Terdaftar Di Bei Tahun 2014-2018). Diponegoro Journal of Management, 9(2), 1–13.

Kusmayadi, D. (2018). Analysis of Effect of Capital Adequacy Ratio, Loan to Deposit Ratio, Non Performing Loan, Bopo, and Size on Return on Assets in Rural Banks at Indonesia. Saudi Journal of Business and Management Studies, 3(7), 786–795.

Kusumastuti, W. I., & Alam, A. (2019). Analysis of Impact of CAR, NPF, BOPO on Profitability of Islamic Banks (Year 2015-2017). Journal of Islamic Economic Laws, 2(1), 30–59.

Laeven, L., Ratnovski, L., & Tong, H. (2016). Bank size, capital, and systemic risk: Some international evidence. Journal of Banking & Finance, 69(1), 25–34.

Nahar, F. H., & Prawoto, N. (2017). Bank’s Profitability In Indonesia: Case Study Of Islamic Banks Period 2008-2012. Jurnal Ekonomi & Studi Pembangunan, 18(2), 164–172.

Nugroho, L., & Bararah, H. N. (2018). Pengaruh Good Corporate Governance dan Biaya Operasional dan Pendapatan Operasional (BOPO) terhadap stabilitas keuangan bank umum syariah di Indonesia Tahun 2012-2017. INOBIS: Jurnal Inovasi Bisnis Dan Manajemen, 6(2), 114–122.

Ozili, P. K. (2019). Determinants of Banking Stability in Nigeria. Forthcoming in: CBN Bullion, 43(2), 1–14.

Parashar, S. P., & Venkatesh, J. (2010). How Did Islamic Banks Do During Global Financial Crisis? Banks and Bank Systems, 5(4), 54–62.

Purnamandari, N. P. A. L., & Badera, I. D. N. (2015). Kemampuan Prediksi Rasio Keuangan Dan Ukuran Bank Pada Risiko Gagal Bank. E-Jurnal Akuntansi, 12(2), 172–187.

Rahim, S. R. M., & Zakaria, R. H. (2013). Comparison on Stability Between Islamic and Conventional Banks in Malaysia. Journal of Islamic Economics, Banking and Finance, 9(3), 131–149.

Shahid, M. A., & Abbas, Z. (2012). Financial stability of Islamic banking in Pakistan: An empirical study. African Journal of Business Management, 6(10), 3706–3714.

Sudarsono, H. (2017). Analisis Pengaruh Kinerja Keuangan terhadap Profitabilitas Bank Syariah di Indonesia. Economica: Jurnal Ekonomi Islam, 8(2), 175–203.


Full Text: PDF

DOI: 10.30595/kompartemen.v21i2.18548

Copyright (c) 2023 Kompartemen : Jurnal Ilmiah Akuntansi

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

ISSN: 2579-8928