<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

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

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This study aims to analyze the determinants of systemic risk in Islamic and conventional banks. The population of this research is Islamic and conventional...

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

Data publikacji: 31 maj 2022

Zakres stron: 202 - 217

DOI: https://doi.org/10.2478/sbe-2022-0014

Słowa kluczowe
Financial, Failure, Systemic Risk, Islamic Banking

© 2022 Rahmadana Muhammad Fitri et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Data publikacji: 31 maj 2022

Zakres stron: 202 - 217

DOI: https://doi.org/10.2478/sbe-2022-0014

Słowa kluczoweFinancial, Failure, Systemic Risk, Islamic Banking

© 2022 Rahmadana Muhammad Fitri et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
Financial, Failure, Systemic Risk, Islamic Banking