INTERNATIONAL PUBLICATIONS

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EFFECT OF ENDOGENOUS RISK ON SYSTEMIC RISK IN INDONESIAN ISLAMIC BANKING
(International Conference on Islamic Economics Management Accounting Business and Social Sciences (ICIEMABS)I, Fakultas Ekonomi dan Bisnis Universitas Padjajaran, STIE Ibnu Sina, APTISI, 2016-08-10) Alfiana; Permatasari, Anggiani
Islamic banking assets accounted for less than 5% of conventional banking assets in Indonesia. Thus, studies on systemic risk or acute financial instability rarely investigated Islamic banking. This study performed in order to fill the absence. It aimed at determining endogenous risk variables affecting the systemic risk in the Indonesian Islamic banking such as capital adequacy risk, contagion, credit risk, bank run, and liquidity risk. It applied multiple regression. Its statistical data sourced from Indonesian Islamic banking 2010-2016. The results showed that only liquidity risk and bank run significantly affected systemic risk, whereas credit risk, capital adequacy risk and contagion did not. As conclusions, endogenous risk movement affected systemic risk movement by 38.07% in which the liquidity risk and bank run positively affected systemic risk in Indonesian Islamic banking. This study would expectedly contribute to bankers and the central bank in maintaining endogenous risk so as to avoid and mitigate effects of systemic risk in Indonesian Islamic banking in the absence of the Act on The Financial System Safety Net in Indonesia to avoid a bank with systemic impact.