Search for collections on UNIDA Gontor Repository

The Effect Covid-19 and Sectoral Financing on Islamic Bank Profitability in Indonesia

Umam, Khoirul (2022) The Effect Covid-19 and Sectoral Financing on Islamic Bank Profitability in Indonesia. Journal of Islamic Economic Laws, 5 (1). pp. 38-60. ISSN 2655-9617

[img] Text (Jurnal)
2022-The Effect Covid-19 and Sectoral Financing on Islamic Bank Profitability in Indonesia.pdf - Published Version
Available under License Creative Commons Attribution Non-commercial Share Alike.

Download (470kB)
[img] Text (Plagiarism)
2022-The Effect Covid-19 and Sectoral Financi.pdf

Download (550kB)


COVID-19 pandemic has created a new economic crisis worldwide. Islamic Bank which was reportedly resilient against the financial crisis is expected to be stable in this period. Apart from that, Islamic Bank in Indonesia has channeled financing fund to various business sectors with different portions leading to a question whether they have different impact on Islamic Bank’s profitability. This paper aims to discover the impact of COVID-19 pandemic and financing to business sectors on Islamic Bank profitability in Indonesia. An ARDL approach is employed for analysis. The result of the study shows that COVID-19 pandemic has a negative relationship with Islamic Bank profitability in the long-run. Furthermore, financing to transportation, warehousing and communication sectors is associated with higher profitability in the short-run. On the other hand, financing to wholesale and retail trade sectors hurt Islamic Bank profitability. Based on this result, it is suggested that Government impose some measures in stabilizing Islamic Bank’s performance during COVID-19 pandemic. In addition, Islamic Banks are expected to make adjustment on financing to business sectors ratio accordingly in order to maintain the profitability of Islamic Bank.

Item Type: Article
Uncontrolled Keywords: COVID-19, profitability, business sector, ARDL
Subjects: 23rd Dewey Decimal Classification > 2X6 - Masyarakat, Politik, Ekonomi, Organisasi, Kebudayaan, Perpustakaan, dan Adat Istiadat dalam Islam > 2X6.300 - Ekonomi Islam, Sistem Ekonomi Islam
Divisions: Fakultas Ekonomi dan Manajemen UNIDA Gontor > Ekonomi Islam
Depositing User: PAK Fakultas Ekonomi Menejemen
Date Deposited: 06 Jul 2023 03:41
Last Modified: 06 Jul 2023 03:41

Actions (login required)

View Item View Item