Toward a Resilient Islamic Banking System: Insights from 14 Years of Research

Dimas Bagus Wiranatakusuma; Anggi Aprizal; Rosylin Mohd Yusof; Ganjar Primambudi; Norazlina Abd Wahab; Nurul Huda binti Abdul Majid; Faiz Ajhar Arundaya

doi:10.15408/etk.v24i2.41440

Authors

Dimas Bagus Wiranatakusuma Department of Economics, Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Indonesia https://orcid.org/0000-0002-1884-8507
Anggi Aprizal Universitas Muhammadiyah Yogyakarta
Rosylin Mohd Yusof Universiti Utara Malaysia
Ganjar Primambudi International Islamic University Malaysia
Norazlina Abd Wahab Universiti Utara Malaysia
Nurul Huda binti Abdul Majid Universiti Utara Malaysia
Faiz Ajhar Arundaya Universitas Muhammadiyah Yogyakarta

DOI:

https://doi.org/10.15408/etk.v24i2.41440

Keywords:

Islamic Banking, Resilience, Systematic Literature Review, macroeconomic indicators, risk management

Abstract

Research Originality: This research is unique in that it consolidates macroeconomic and institutional studies to better understand how Islamic banks absorb and recover from financial shocks.

Research Objectives: To investigate the conceptual and empirical development of Islamic banking resilience over the past 14 years, concentrating on dominating variables and thematic clusters.

Research Method: The research examines 42 peer-reviewed journal articles indexed in Scopus through a comprehensive systematic literature review (SLR) methodology utilizing bibliometric instruments.

Empirical Results: Internal factors like capital adequacy, liquidity, and profitability, as well as macroeconomic indices like GDP and inflation, influence resilience. The keyword “bank resilience” is underused, implying a lack of conceptual consistency in the literature.

JEL Classification: G21, G32, E44, E58, Z12

Implications: An integrated view of resilience in Islamic finance and the requirement for specialized regulatory frameworks and resilience-based performance metrics customized to Islamic banking principles has substantial implications for researchers, policymakers, and regulators.

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