Strategy of Islamic Rural Banks Improving Financial Performance During the Covid-19 Pandemic

Mardhiyaturrositaningsih Mardhiyaturrositaningsih, Rohmatul Janah

Abstract


This study aims to measure the pattern of Islamic Rural Banks strategic management in Central Java during the Covid-19 Pandemic. This study use SWOT Analysis by determining Internal Factor Analysis Summary (IFAS) and External Factor Analysis Summary (EFAS). The sources of this research data were collected through a Focus Group Discussion conducted with the Financial Services Authority, Islamic Rural Banks Practitioners and Academics. The results of the study show that the Islamic Rural Banks considers the Covid-19 pandemic as a challenge with several priority aspects of control. Strategy formulation and implementation are carried out through changes to the Bank's Business Plan. Bank limited the distribution of high-risk financing during the Covid-19 Pandemic. Islamic Rural Banks focuses on the health sector, cooperation and government projects.


Keywords


Covid-19; Islamic Rural Banks; Strategy Management

Full Text:

PDF

References


Adeniran, A.O., Jadah, H.M. and Mohammed, N.H. (2020) ‘Impact of Information Technology on Strategic Management in The Banking Sector of Iraq’, Insights into Regional Development, 2(2).

Beck, T. and Keil, J. (2022) ‘Have Banks Caught Corona? Effect of Covid on Lending in The U.S.’, Journal of Corporate Finance, 72.

Catio, M., Sarwani and Ruknan (2021) Manajemen Strategi. Tanggerang: Indigo Media.

Colak, G. and Oztekin, O. (2021) ‘The Impact of Covid-19 Pandemic on Bank Lending around The World’, Journal of Bnaking and Finance [Preprint].

Dinu, V. and Bunea, M. (2022) ‘The Impact of Competition and Risk Exposure on Profitability of the Romanian Banking System During the COVID-19 Pandemic’, Journal of Competitiveness, 14(2), pp. 5–22.

Dwivedi, P., Alabdooli, J.I. and Dwivedi, R. (2021) ‘Role of FinTech Adoption for Competitiveness and Performance of the Bank: A Study of Banking Industry in UAE’, International Journal of Global Business and Competitiveness, 16, pp. 130–138.

Hajar, I. (2019) Manajemen Strategi - Konsep Keunggulan Bersaing. Yogyakarta: Andi offset.

Kementerian Kesehatan Republik Indonesia (2020) Protokol Kesehatan bagi Masyarakat di Tempat dan Fasilitas Umum dalam rangka Pencegahan dan Pengendalian Corona Virus Disease 2019 (Covid-19). HK.01.07/ MENKES/382/2020. Indonesia: Kementerian Kesehatan Republik Indonesia.

Kitsios, F., Giatsidis, I. and Kamariotou, M. (2021) ‘Digital Transformation and Strategy in the Banking Sector: Evaluating the Acceptence Rate of E-Services’, Journal of Open Innovation: Technology, Market and Complexity, 7(204), pp. 1–14.

Le, T.D. et al. (2022) ‘A Cross-country analysis on diversification, sukuk investment, and the performance of islamic banking systems under the Covid-19 Pandemic’, Heliyon, 8, pp. 1–8.

Mardhiyaturrositaningsih (2022) ‘The Impact of The Covid-19 Pandemic on The Financial Performance of Islamic Rural Banks in Central Java’, Muqtasid: Journal of Islamic Economics and Banking, 13(1), pp. 63–76.

Mashura, S. et al. (2021) ‘Strategic Assessment of Covid-19 Pandemic in Bangladesh: Comparative Lockdown Scenario Analysis, Public Perception, and Management for Sustainability’, Environment, Development and Sustainability [Preprint].

Maulida, E. et al. (2021) Manajemen Strategik. Bandung: Media Sains Indonesia.

Miklaszewska, E., Kil, K. and Idzik, M. (2021) ‘How the Covid-19 Pandemic Affects Bank Risks and Returns: Evidence from EU members in Central, Eastern, and Northern Europe’, Risks, 9(10).

Muhammad (2020) Bank & Lembaga Keuangan Syariah Lainnya. Depok: Raja Grafindo Persada.

Neef, H.O.D. and Schandlbauer, A. (2022) ‘Covid-19, bank deposits, and lending’, Journal of Empirical Finance, 68, pp. 20–33. doi:https://doi.org/10.1016/j.jempfin.2022.05.003.

Otoritas Jasa Keuangan (2020a) Kebijakan Bagi Bank Perkreditan Rakyat dan Bank Pembiayaan Rakyat Syariah sebagai Dampak Penyebaran Coronavirus Disease 2019. 34/POJK.03/2020. Indonesia: Peraturan Otoritas Jasa Keuangan.

Otoritas Jasa Keuangan (2020b) Siaran Pers tentang Operasional Industri Jasa Keuangan dalam Masa Penerapan Pembatasan Sosial Berskala Besar (PSBB) di Berbagai Daerah. SP 26/DHMS/OJK/IV/2020. Indonesia: Otoritas Jasa Keuangan.

Otoritas Jasa Keuangan (2021) Statistik Perbankan Syariah Januari 2021.

Pinzaru, F. and Zbuchea, A. (2020) ‘Adapting Knowledge Management Strategies in The Context of The Covid-19 Pandemic: A Preliminary Overview’, in Proceedings of The 14th International Management Conference ‘Managing Sustainable Organizations’. Romania.

Rahmayati (2021) ‘Competition Strategy in The Islamic Banking Industry: An Empirical Review’, International Journal of Business, Economics and Social Development, 2(2).

Shaharuddin, A. (2020) ‘Do Islamic Banks Act Islamic During Covid-19 Pandemic?’, The Journal of Muamalat and Islamic Finance Research, 17.

Shen, H. et al. (2020) ‘The Impact of the COVID-19 Pandemic on Firm Performance’, Emerging Markets Finance and Trade, 56(10).

Soemitra, A. (2018) Bank & Lembaga Keuangan Syariah. Jakarta: Kencana Prenada Media Group.

Stroie, C. et al. (2023) ‘The reorganisation decision test: A risk analysis model to increase competitiveness’, Journal of Competitiveness, 12(2), pp. 78–95.

Sugarda, Y.B. (2020) Panduan Praktis Pelaksanaan Focus Group Discussion sebagai Metode Riset Kualitatif. Jakarta: Gramedia Pustaka Utama.

Supanto, F. (2019) Manajemen Strategi Organisasi Publik dan Privat. Malang: Empatdua Media.

Talbot, D. and Ponce, E.O. (2020) ‘Canadian Banks’ Responses to Covid-19: A Strategic Positioning Analysis’, Journal of Sustainable Finance & Investment [Preprint].

Tavares, F. et al. (2023) ‘A Statistical Analysis of Companies’ Financing Strategies in Portugal during the Covid-19 Pandemic’, Journal of Risk and Financial Management, 16(116), pp. 1–17.

Theiri, S. and Alareeni, B. (2023) ‘Perception of The Digital Transformation as a Strategic Advantage through the Covid 19 Crisis? Case of Tunisian Banks’, Journal of Sustainable Finance & Investment, 13(1), pp. 477–498.

Wheelen, T.L. and Hunger, J.D. (2012) Strategic Management and Business Policy Toward Global Sustainability. Upper Saddle River, New Jersey: Prentice Hall.

Yan, C. et al. (2021) ‘Factors influencing the adoption intention of using mobile financial service during the COVID-19 pandemic: the role of FinTech’, Environmental Science and Pollution Research, 30, pp. 61271–61289.




DOI: https://doi.org/10.29313/amwaluna.v7i2.8915

Refbacks

  • There are currently no refbacks.


Editorial Office:

Syariah Faculty, Universitas Islam Bandung

Jalan Tamansari No. 24-26 Kota Bandung

Creative Commons License

Amwaluna : Jurnal Ekonomi dan Keuangan Syariah is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

View My Stats