THE INFLUENCE OF BASEL III ON ISLAMIC BANK RISK

This paper investigates the impact of bank regulatory capital on Islamic bank risk using bank-level data from 29 countries covering the period from 2004 to 2020. Applying the generalized method of moments technique on dynamic panels, we discover that on average Islamic bank regulatory capital ratios exceed the level required by Basel III. The findings provide evidence in support of the moral hazard hypothesis;that is, there is a negative relationship between capital and risk. They indicate that Islamic banks are better protected against risk when they fulfill Basel III and IFSB regulatory capital requirements. According to our findings, authorities that aim to improve the financial stability of the banking industry should reinforce their policies and oblige banks to adhere to regulatory capital requirements during crises such as Covid-19. Finally, we observe that different risk indicators have diverse correlations with regulatory capital, and that the findings are robust across a variety of estimation methodologies. © 2023 University of Ljubljana - Veterinary Faculty. All rights reserved.

The Determinants of Non-Performing Loans in the Indonesian Banking Industry: An Asymmetric Approach Before and During the Pandemic Crisis

The outbreak has created an unprecedented crisis that influences macroeconomic variables. These circumstances are predicted to be contagious for banking performance. To understand the related influences, this study attempts to examine the asymmetric relationship between macroeconomic variables and non-performing loans/financing of the Indonesian banking industry before and during the COVID-19 pandemic. The nonlinear autoregressive distributed lag (NARDL) is adopted based on the time-series data from 2005Q1 to 2021Q1. The study provides evidence that an asymmetric relationship between macroeconomic variables and the banks’ non-performing loans/financing exists both before and during the pandemic. In addition, asymmetric relationships of macroeconomic variables on Islamic banks are more prominent before the pandemic even though it occurs inversely during the pandemic. As for policy implication, the financial authority needs to be prudent in implementing financial policies due to the presence of an asymmetric relationship between macroeconomic variables and the banks’ non-performing loans/financing. Moreover, the authority must ensure that all financial policies will be effective to all types of banks regardless of conventional or Islamic banks. © The Author(s) 2022.

Brand Association of Ciletuh - Palabuhanratu Geopark Towards COVID-19 Pandemic and Sustainable Tourism

The purpose of this research is to investigate brand association of Ciletuh – Palabuhanratu UNESCO Global Geopark towards the COVID-19 pandemic and sustainable tourism. This research employs a qualitative research method with a case study and descriptive statistics model. The data used in this study are primary and secondary ones in which the techniques of data collecting is by observation, purposive random sampling with Likert scale, as well as literature studies. The results of this study show that Ciletuh-Palabuhanratu Geopark is not only a strategic place for tourism activities in the COVID-19 pandemic since it has characteristics to comply health protocols but also able to meet the tourism recovery during the pandemic. The tourism activities provided by Ciletuh-Palabuhanratu Geopark sites meet the concept of quality adventure tourism and in line with sustainable tourism with concerns on balancing the environmental conservation, local economic empowerment, as well as local social and culture preservation. The brand association of Ciletuh-Palabuhanratu Geopark is shown by its tourism product scope and quality which are associated to sustainable tourism, moreover the use occasion is line with the COVID-19 pandemic situation. The attributes of UNESCO Global Geopark also create the values of tourism activities during and after COVID-19 pandemic which meet the points of sustainable tourism activities and recoveries. © 2021 WITPress. All rights reserved.

The impact of COVID-19 pandemic on Islamic versus conventional stock markets: international evidence from financial markets

This study employs sample t-tests and panel pooled OLS regression to investigate the impact of COVID-19 pandemic on Islamic versus conventional stock markets returns. The study uses daily data from 15 countries over the period of September 01, 2019-April 30, 2020, which covers two main periods and over four sub-periods. Findings reveal that the returns of Islamic indices begun to be positive instead of negative by mid-April 2020, while returns of conventional ones remain negative throughout the periods. Furthermore, the results suggest a negative and statistically significant impact of COVID-19 on the performance of both stock indices. Nevertheless, this impact is weak on the Islamic indices and strong on the conventional ones. Overall, the findings indicate that Islamic stock markets perform better before and during COVID-19 than the conventional ones, and the adverse impact of the pandemic on the stock markets is relatively lesser for the Islamic indices.