eprintid: 9683
rev_number: 7
eprint_status: archive
userid: 1736
dir: disk0/00/00/96/83
datestamp: 2021-08-24 14:28:19
lastmod: 2021-08-24 14:28:19
status_changed: 2021-08-24 14:28:19
type: article
metadata_visibility: no_search
creators_name: Budiandru, Budiandru
creators_id: budiandru@uhamka.ac.id
contributors_type: http://www.loc.gov/loc.terms/relators/AUT
title: Default Risk on Islamic Banking in Indonesia
ispublished: pub
subjects: HC
divisions: Akuntansi
abstract: The problem of default by debtors becomes a primary concern for Islamic banking
recently. This study analyzes the effect of economic pressure on the risk of default on
Islamic banks, both in the short and long term, the risk response of default, and also
other variables' contribution in explaining the diversity of risk of default of Islamic
banks. This study used monthly data from 2007 to 2020 by using a vector error
correction model. The results show that inflation and exchange rates affect the risk of
default in the short term, while inflation, exchange rates, and interest rates affect the
risk of default in the long run. Non-performing financing quickly stabilized when
responding to the interest rates. The Islamic stock index has the most significant
contribution in explaining the diversity of default risks. Islamic banks must be aware
of the monetary fluctuation and also careful in analyzing the demand for financing
by looking at the future economic prospects.
date: 2021-03
date_type: published
publisher: Perbanans Journal
official_url: https://journal.perbanas.ac.id/index.php/jebav/article/view/2474
full_text_status: public
publication: Journal of Economics, Business, and Accountancy Ventura
volume: 24
number: 1
pagerange: 49-62
refereed: TRUE
issn: 2087-3735
related_url_url: https://journal.perbanas.ac.id/index.php/jebav/article/view/2474
related_url_type: org
citation:   Budiandru, Budiandru  (2021) Default Risk on Islamic Banking in Indonesia.  Journal of Economics, Business, and Accountancy Ventura, 24 (1).  pp. 49-62.  ISSN 2087-3735     
document_url: http://repository.uhamka.ac.id/id/eprint/9683/1/2474-8544-1-PB%20%281%29.pdf