Capturing Islamic bank performance in Indonesia during the COVID-19 crisis: RGEC and SCNP approaches

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While adhering to the unique principle of Islamic value, Islamic banks are subject to any occurring crisis, just like other banks in common. After the end of the COVID-19 crisis, it is important to determine whether Islamic banking can demonstrate its resilience based on the unique values it upholds. Therefore, the primary objective of this study is to capture how Islamic banks performed during the unprecedented challenge posed by COVID-19. By utilizing the data generated from financial reports, this study employs the RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) method that was introduced by Indonesia Central Bank and SCnP (Sharia Conformity and Profitability) measurement. The findings show that by utilizing RGEC, the study classifies Islamic banks into tiers of health, distinguishing 7 as very healthy, 5 as healthy, and 2 as fairly healthy. Meanwhile, SCnP sheds light on the balance between Sharia conformity and profitability, highlighting 2 Islamic banks with commendable equilibrium, 5 displaying a tilt towards high profitability and low conformity, 4 with a tendency towards Shariah conformity with low profitability, and 3 struggling with challenges in both aspects. The study concludes the overall financial resilience of the majority of Islamic banks in Indonesia during the pandemic while noting that some banks faced challenges in achieving a harmonious balance between profitability and Sharia conformity.

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    • Figure 1. SCnP quadrant
    • Figure 2. Projection of SCnP quadrant
    • Table 1. Range of the composite index in RGEC
    • Table 2. RGEC indicators and score calculations
    • Table 3. Indicators and measurement of SCnP
    • Table 4. Results of calculating SCnP indicators
    • Table A1. Results of calculating RGEC indicators
    • Table B1. Final result of RGEC calculation
    • Conceptualization
      Fauzul Hanif Noor Athief
    • Formal Analysis
      Fauzul Hanif Noor Athief, Rheyza Virgiawan
    • Investigation
      Fauzul Hanif Noor Athief, Rafiq Ahmad Zaky
    • Methodology
      Fauzul Hanif Noor Athief, Rafiq Ahmad Zaky, Azidni Rofiqo
    • Project administration
      Fauzul Hanif Noor Athief, Azidni Rofiqo
    • Supervision
      Fauzul Hanif Noor Athief, Rheyza Virgiawan
    • Visualization
      Fauzul Hanif Noor Athief, Muhammad Anwar Fathoni, Azidni Rofiqo
    • Writing – original draft
      Fauzul Hanif Noor Athief, Rafiq Ahmad Zaky, Muhammad Anwar Fathoni
    • Writing – review & editing
      Fauzul Hanif Noor Athief, Rheyza Virgiawan, Azidni Rofiqo
    • Data curation
      Rafiq Ahmad Zaky, Muhammad Anwar Fathoni
    • Resources
      Rafiq Ahmad Zaky, Muhammad Anwar Fathoni, Azidni Rofiqo
    • Software
      Rafiq Ahmad Zaky
    • Funding acquisition
      Rheyza Virgiawan, Muhammad Anwar Fathoni, Azidni Rofiqo
    • Validation
      Rheyza Virgiawan, Muhammad Anwar Fathoni