Financial stability in Indonesian Islamic banking using Z-Score: Before and during Covid-19

Authors

  • Moh Alfiyan Universitas Ahmad Dahlan
  • Rofiul Wahyudi Universitas Ahmad Dahlan, Indonesia; Universiti Tun Hussein Onn Malaysia
  • Maimunah Binti Ali Maimunah Universiti Tun Hussein Onn Malaysia
  • Riduwan Riduwan Universitas Ahmad Dahlan

DOI:

https://doi.org/10.26740/aluqud.v7n1.p17-32

Abstract

This study aims to analyze the level of comparison of the financial stability of Islamic banking in the period before and during the Covid-19 pandemic. This study uses a paired T-test by taking samples of 13 Islamic Commercial Banks that publish financial reports regularly on the website of OJK in quarter I 2019 – quarter IV 2020. The results explain that Z-Score, BOPO, NPF, HHI, GDP and Inflation have no differences in the average level before pandemic compared to during the Covid-19 pandemic. Then FDR, Bank Size and BI Rate have differences in the average level before pandemic compared to during the Covid-19 pandemic. The results of the comparative analysis of the financial stability of Islamic banking before the Covid-19 pandemic compared to during the Covid-19 pandemic through the Z-Score analytical explained that Islamic banks were more stable before the pandemic, but still had good stability during the Covid-19 pandemic.

Published

2022-09-15

How to Cite

Alfiyan, M., Wahyudi, R. ., Maimunah, M. B. A., & Riduwan, R. (2022). Financial stability in Indonesian Islamic banking using Z-Score: Before and during Covid-19. Al-Uqud : Journal of Islamic Economics, 7(1), 17–32. https://doi.org/10.26740/aluqud.v7n1.p17-32

Issue

Section

Articles
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