RETESTING OF PROCYCLICALITY IN INDONESIAN SHARIA BANKING DURING THE COVID-19
Introduction: The Covid-19 pandemic is unique because the financial sector is usually affected earlier when a shock occurs, but in this incident, the real industry is more affected. Differences of opinion regarding procyclicality maintain the importance of early indication. Methods: This study aim...
Main Authors: | , , |
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Format: | Article |
Language: | English |
Published: |
Fakultas Ekonomi dan Bisnis, Universitas Airlangga
2023-05-01
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Series: | Jurnal Ekonomi dan Bisnis Airlangga |
Online Access: | https://e-journal.unair.ac.id/JEBA/article/view/45495 |
Summary: | Introduction: The Covid-19 pandemic is unique because the financial sector is usually affected earlier when a shock occurs, but in this incident, the real industry is more affected. Differences of opinion regarding procyclicality maintain the importance of early indication.
Methods: This study aims to reexamine procyclicality in Islamic banking using the VAR/VECM method.
Results: The results show that Islamic banks are proxies that support economic development without causing bubbles.
Conclusion and suggestion: The avoidance of MAGHRIB (Maysir, Gharar and Riba) ultimately makes Islamic banks have financing characteristics that are different from conventional loans. |
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ISSN: | 2338-2686 2597-4564 |