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.
RETESTING OF PROCYCLICALITY IN INDONESIAN SHARIA BANKING DURING THE COVID-19
- ISBN: -
- eISBN: -
- ISSN: 2597-4564
Tanggal Publikasi: 16 Mei 2023
Procyclicality, VAR/VECM, Covid-19