Stability And Resilience of Islamic Banking System: A Closer Look at The Macroeconomic Effects

Abstract

The aim of the research is to perform a systematic and comprehensive time series analysis of the resilience of Islamic banks in Indonesia, with a focus on macroeconomic factors. The research method used in this study is time series analysis, which is a quantitative descriptive approach. Meanwhile, data collection was carried out by systematically and consistently analyzing the quarterly financial statements of Bank Mega Syariah in the 2009-2019 period. The data is then analyzed in time series utilising multiple regression equations to provide an approximate of Islamic banks' stability and resilience. According to the findings of this study, variables influence the resilience and stability of Bank Mega Syariah. Furthermore, bank resilience and stability are influenced by factors other than bank profits. External associated with economic growth, inflation rates, and the exchange rate of the rupiah against the US dollar both have a massive effect. This study is expected to have an impact on the development of the literature, particularly in terms of the effect of financial vulnerability on the banking sector. In practice, the findings of this study are found to be essential to stakeholders, particularly Islamic financial bankers.