This study aims to analyze the risks on Islamic banks in Indonesia by identifying which risk is significantly dominant in triggering other risks to happen. For that purpose, the study uses time series data on a monthly basis from 2010:M1 to 2018:M8. The data are obtained from the Financial Services Authority (OJK) Indonesia and analyzed using vector autoregression (VAR). Some variables are employed to proxy risk vulnerability including financing-to-deposit ratio (FDR) as a proxy of liquidity risk, nonperforming financing (NPF) as a proxy of financing risk, and cost-to-income ratio (BOPO) as a proxy of operational risk. The findings suggest that financing risk is the most dominant risk triggering vulnerability on Islamic banks in Indonesia.
This article considers the world at risk; in particular it focuses on the three topics covered at the international conference of Catholic Theological Ethics in the World Church in 2018 in Sarajevo: climate change, its impact on marginalized populations, and the tragic banality of contemporary political leadership. The article turns to a proposal by Trinity College’s Linda Hogan to develop an ethics of vulnerability so as to respond to the triple crisis. After examining contemporary writings on both vulnerability and precarity by Judith Butler and others, it concludes by applying the ethics of vulnerability to other urgent cases as well.
Risk Analyses on Islamic Banks in Indonesia