Berita

Surabaya—One of the main  4^th Indonesia Sharia Economic Festival (ISEF) 2017 agendas is research and education by conducting the international conference known as the 3^rd International Islamic Monetary Economics and Finance (IIMEFC) 2017 that took place in Surabaya between 8 and 9 November 2017. In this conference, 32 scholars and researchers coming from roughly 30 countries around the globe were invited and given the opportunity to present and discuss their papers related to Islamic Monetary Economics and Finance. Seminal paper by Director of IPIEf UMY, Dimas Bagus Wiranatakusuma, M.Ec, was one of those 32 papers selected to be discussed in such a prestigious conference held on behalf of ISEF 2017.
Dimas Bagus Wiranatakusuma, SE., M.Ec highlighted the issue of Islamic banking stability that may certainly contribute to the whole economic system since it is commonly known that Islamic bank has been inherently stable from financial crisis. He emphasized: “The resilience of Islamic banks is a very basic foundation as well as a pre-condition of sustainable economic growth that has to be accomplished. This paper therefore is aimed to extensively investigate the level of resilience of Islamic banking by constructing the index named Islamic Banking Resilience Index (IBRI).” Furthermore, this composite index is built through compiling several single index which encompasses twelve different variables.
“IBRI is capable of determining the resilience level of Islamic banking at which it can deal with stresses and therefore is still able to keep providing financial services. Accordingly, this composite index is likely to be the surveillance tools for monetary authority to implement the proper policy in order to safeguard the stability of Islamic financial system,” said Dimas Bagus Wiranatakusuma, M.Ec when presenting his paper (8/11). This paper has also found another crucial finding, demonstrating if Islamic banking has a solid capital and liquidity management, its resilience can always be maintained to curb the shocks.
Rizaldy, one of the participant in this conference, stated that the study on resilience seemed to be valuable reference to get further researches on the financial system stability broadened not only because the Islamic finance has been part of the existing system but also as it could prevent financial crash that will probably be happening in such a vulnerable financial system. [Aw]