Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024)

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The Effect of Income Diversification and Moderating Role of Health Crisis on the Profitability Performance and Financing Risk of Islamic Banks in MENA and SEA Region

Authors
Prameswari Jovita Astuti Putri1, V. Viverita1, *
1Universitas Indonesia, Depok, Indonesia
*Corresponding author. Email: viverita.d@ui.ac.id
Corresponding Author
V. Viverita
Available Online 11 December 2024.
DOI
10.2991/978-94-6463-585-0_18How to use a DOI?
Keywords
Income Diversification; Sharia Banks; Profitability Performance; Financing Risk
Abstract

This study analyses the influence of income diversification on the profitability performance and financing risk of Sharia banks in the Middle East and North Africa (MENA) and Southeast Asia (SEA) region. The research introduces a novel approach by using a health crisis (Covid-19 / Covid-19 Pandemic) as a moderating variable for us to assess the conditional effects of income diversification towards Sharia banks’ profitability performance and financing risk. This study uses regression analysis with interaction terms to capture how health crises moderate these relationships. Results show that income diversification increased Sharia banks’ performance and lowered financing risks. However, the impact of income diversification weakens during the health crisis. These suggest that Sharia banks can diversify income streams as they may experience a buffering effect during economic downturns.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
11 December 2024
ISBN
978-94-6463-585-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-585-0_18How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Prameswari Jovita Astuti Putri
AU  - V. Viverita
PY  - 2024
DA  - 2024/12/11
TI  - The Effect of Income Diversification and Moderating Role of Health Crisis on the Profitability Performance and Financing Risk of Islamic Banks in MENA and SEA Region
BT  - Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024)
PB  - Atlantis Press
SP  - 249
EP  - 263
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-585-0_18
DO  - 10.2991/978-94-6463-585-0_18
ID  - Putri2024
ER  -