1. bookVolume 17 (2022): Issue 1 (April 2022)
Journal Details
License
Format
Journal
eISSN
2344-5416
First Published
06 Mar 2015
Publication timeframe
3 times per year
Languages
English
access type Open Access

Determinants Analysis of Islamic and Conventional Banks Systemic Risk Potentiality: A Preliminary Study

Published Online: 31 May 2022
Volume & Issue: Volume 17 (2022) - Issue 1 (April 2022)
Page range: 202 - 217
Journal Details
License
Format
Journal
eISSN
2344-5416
First Published
06 Mar 2015
Publication timeframe
3 times per year
Languages
English
Abstract

This study aims to analyze the determinants of systemic risk in Islamic and conventional banks. The population of this research is Islamic and conventional banks, which are listed on the Indonesia Stock Exchange. Researchers used purposive sampling to ensure the suitability of the sample with the research objectives. Furthermore, we use secondary data obtained from financial databases such as Yahoo Finance and the Indonesia Stock Exchange. This study adopts the systemic risk measurement offered by Fiordelisi and Marquez-Ibanez (2013). The determinants of systemic risk were explored from the six independent variables, namely the bank efficiency, business model, size, interest rate, GDP, and bank categories (Islamic or conventional). Data analysis was performed with panel data regression. The results indicate that size is the critical factor in determining potential systemic risk for banks, both Islamic and conventional banks. This study contributes theoretically in constructing theoretical frameworks related to the stability and resilience of Islamic banks in comparison with conventional banks. Practically this study seeks to produce recommendations for improvement of Islamic banking financial governance as an alternative to conventional banking.

Keywords

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