RISK-TAKING COMPARISON OF ISLAMIC AND CONVENTIONAL BANKS DURING COVID-19 PANDEMIC: INDONESIAN CASE STUDY
Some banks in Indonesia adopt a dual banking system that is Islamic and Conventional which operate sides-by-side. During a pandemic, both banks use their strategies to maintain their performance. During Global Financial Crisis (GFC), conventional banks' risk-taking was less inclined when the...
Saved in:
| Main Author: | |
|---|---|
| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/57744 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Some banks in Indonesia adopt a dual banking system that is Islamic and Conventional which
operate sides-by-side. During a pandemic, both banks use their strategies to maintain their
performance. During Global Financial Crisis (GFC), conventional banks' risk-taking was less
inclined when they were faced with lower funding liquidity risk while Islamic Banks tend to be
more careful in taking more risk. However, it is unknown what impact will it have on banks in
Indonesia during the COVID-19 pandemic. Using Islamic and Conventional banks data in
Indonesia, this research analyzed using panel data regression finds that the presence of COVID-
19 pandemic affects conventional and Islamic banks' risk-taking behavior, and both banks risktaking
behavior found to be different. It is also found that banks’ size has a positive correlation
with banks’ risk-taking |
|---|