Determinants of Islamic Bnsak' Stability in Malaysia and Indonesia
The economic prosperity of any nation relies on its banking sector, which serves as the linchpin of the economy. This paper investigates key bank-specific factors influencing the stability of Islamic banks in Malaysia and Indonesia from 2012 to 2021. Using panel data analysis, the study identifies t...
Published in: | INDONESIAN CAPITAL MARKET REVIEW |
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Main Authors: | , , , , , |
Format: | Article |
Language: | English |
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UNIV INDONESIA
2024
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Online Access: | https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001284587200002 |
author |
Saddam Siti Zaitun; Jaafar Mohamad Nizam; Muhamat Amirul Afif; Nizam Nurien Syahirah Mohd; Halim Nurin Aqilah |
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Saddam Siti Zaitun; Jaafar Mohamad Nizam; Muhamat Amirul Afif; Nizam Nurien Syahirah Mohd; Halim Nurin Aqilah Determinants of Islamic Bnsak' Stability in Malaysia and Indonesia Business & Economics |
author_facet |
Saddam Siti Zaitun; Jaafar Mohamad Nizam; Muhamat Amirul Afif; Nizam Nurien Syahirah Mohd; Halim Nurin Aqilah |
author_sort |
Saddam |
spelling |
Saddam, Siti Zaitun; Jaafar, Mohamad Nizam; Muhamat, Amirul Afif; Nizam, Nurien Syahirah Mohd; Halim, Nurin Aqilah Determinants of Islamic Bnsak' Stability in Malaysia and Indonesia INDONESIAN CAPITAL MARKET REVIEW English Article The economic prosperity of any nation relies on its banking sector, which serves as the linchpin of the economy. This paper investigates key bank-specific factors influencing the stability of Islamic banks in Malaysia and Indonesia from 2012 to 2021. Using panel data analysis, the study identifies the fixed effect model as the optimal approach. The subsequent fixed effect regression analysis highlights the significance of the cost-to-income ratio in determining financial stability for both Malaysian and Indonesian Islamic banks. Notably the study reveals that the non-performing loan ratio is the primary stability indicator in Malaysia, while Indonesian counterparts prioritize maintaining a robust capital adequacy ratio. The study recommends vigilant regulatory oversight of capital adequacy and prudent expense management to safeguard banks against instability, fostering sustained financial health and success. UNIV INDONESIA 1979-8997 2356-3818 2024 16 1 10.21002/icmr.v16i1.1193 Business & Economics WOS:001284587200002 https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001284587200002 |
title |
Determinants of Islamic Bnsak' Stability in Malaysia and Indonesia |
title_short |
Determinants of Islamic Bnsak' Stability in Malaysia and Indonesia |
title_full |
Determinants of Islamic Bnsak' Stability in Malaysia and Indonesia |
title_fullStr |
Determinants of Islamic Bnsak' Stability in Malaysia and Indonesia |
title_full_unstemmed |
Determinants of Islamic Bnsak' Stability in Malaysia and Indonesia |
title_sort |
Determinants of Islamic Bnsak' Stability in Malaysia and Indonesia |
container_title |
INDONESIAN CAPITAL MARKET REVIEW |
language |
English |
format |
Article |
description |
The economic prosperity of any nation relies on its banking sector, which serves as the linchpin of the economy. This paper investigates key bank-specific factors influencing the stability of Islamic banks in Malaysia and Indonesia from 2012 to 2021. Using panel data analysis, the study identifies the fixed effect model as the optimal approach. The subsequent fixed effect regression analysis highlights the significance of the cost-to-income ratio in determining financial stability for both Malaysian and Indonesian Islamic banks. Notably the study reveals that the non-performing loan ratio is the primary stability indicator in Malaysia, while Indonesian counterparts prioritize maintaining a robust capital adequacy ratio. The study recommends vigilant regulatory oversight of capital adequacy and prudent expense management to safeguard banks against instability, fostering sustained financial health and success. |
publisher |
UNIV INDONESIA |
issn |
1979-8997 2356-3818 |
publishDate |
2024 |
container_volume |
16 |
container_issue |
1 |
doi_str_mv |
10.21002/icmr.v16i1.1193 |
topic |
Business & Economics |
topic_facet |
Business & Economics |
accesstype |
|
id |
WOS:001284587200002 |
url |
https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001284587200002 |
record_format |
wos |
collection |
Web of Science (WoS) |
_version_ |
1809679295725961216 |