Proceedings of The 2nd International Conference On Advance And Scientific Innovation, ICASI 2019, 18 July, Banda Aceh, Indonesia

Research Article

Risk Rating Comparison Between Islamic Banks in Indonesia and Malaysia

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  • @INPROCEEDINGS{10.4108/eai.18-7-2019.2288647,
        author={Adelia  Nidyanti and Dodik  Siswantoro},
        title={Risk Rating Comparison Between Islamic Banks in Indonesia and Malaysia},
        proceedings={Proceedings of The 2nd International Conference On Advance And Scientific Innovation, ICASI 2019, 18 July, Banda Aceh,  Indonesia},
        publisher={EAI},
        proceedings_a={ICASI},
        year={2019},
        month={11},
        keywords={risk rating compliance islamic banks},
        doi={10.4108/eai.18-7-2019.2288647}
    }
    
  • Adelia Nidyanti
    Dodik Siswantoro
    Year: 2019
    Risk Rating Comparison Between Islamic Banks in Indonesia and Malaysia
    ICASI
    EAI
    DOI: 10.4108/eai.18-7-2019.2288647
Adelia Nidyanti1,*, Dodik Siswantoro1
  • 1: Faculty of Economic and Business, Universitas Indonesia
*Contact email: adelia.nidyanti81@ui.ac.id

Abstract

The objective of this study is providing risk rating of Islamic banks in Indonesia and Malaysia. Islamic banks should be comply with regulations because Sharia compliance is the ultimate goal. In practice, Islamic bank customers question whether Islamic banks apply sharia principles well. However, there is no definite modeling to describe the sharia compliance. The research method of this study is descriptive quantitative which used scorecard model to score the Islamic Bank’s compliance. The sample of this study is five Indonesia Islamic Bank and five Malaysia Islamic Bank. The result shows that Islamic Banks in Indonesia have satisfactory compliance rating while Islamic Banks in Malaysia mostly have high compliance rating. The contribution is providing risk rating of the Islamic Bank. The risk rating is useful to inform the customer and bank management about the compliance and risk that Islamic Bank faces.