How Islamic and conventional bank in Indonesia contributing sustainable development goals achievement

Ghoniyah N., Hartono S.

Abstract

This study aimed to prove that social goal in improving social living standards is implanted on banking’s objective in Indonesia. This research also tried to prove that there were differences between conventional and Islamic banks in defining the company goals, whether the goals are profit-oriented or socially oriented. This social goal is also aligned with sustainable development goals (SDGs) as international agendas in the world. The banks’ contribution will be measured its impact on sustainable development goals. The developed hypotheses are equipped with good financing quality control. Furthermore, this research will compare the social goals of conventional banks and Islamic banks (sharia banks). This research used 801 data from the annual reports of conventional and Islamic banks in Indonesia from 2011 to 2018. Meanwhile, the reflection of sustainable development goals used several indicators, so that the statistical analysis used is WarpPLS. This research proved that there were differences between Islamic and conventional banks in promoting sustainable development. Generally, high financing or credit will increase sustainable development, while the sufficient/low bank profit demanded from the bank financing/credit also will increase sustainable development achievement. In conclusion, the financing quality is able to differentiate whether the low profits earned by banks are due to social orientation for sustainable development or because of poor market conditions (bad credit/financing).

Journal
Cogent Economics and Finance
Page Range
Publication date
2020
Total citations
An empirical analysis of Denmark’s energy economy and environment and its sustainable development policy

Han X., Liu D., Ma J., Wang C., Xin S., Xu M., Yu Y.

Do Islamic banks contribute to growth of the economy? Evidence from United Arab Emirates (UAE)

Anagreh S., Tabash M.I.

Level and determinants of sustainable rural development in the Region of Green Lungs of Poland

Czarnecki A., Stanny M.

No Title

Robinson M.S.

Pengaruh Pembiayaan Bagi Hasil, Pembiayaan Jual Beli, Financing to Deposit Ratio, dan Non Performi ng Financing terhadap Profitabillitas Bank Umum Syariah di Indonesia

Riyadi S., Yulianto A.

Fast-tracking sustainable economic growth and development in Nigeria through international migration and remittances

Ogunjirin O.D., Raimi L.

Pengaruh Indikator Utama Perbankan terhadap Pangsa Pasar Perbankan Syariah

Anwar N., Purboastuti N., Suryahani I.

No Title

Pratiwi D.D.

Solar power generation for ICT and sustainable development in emerging economies

Paul D.I., Uhomoibhi J.

No Title

Nugroho Y.

Conformity of Indonesian Islamic bank CSR practices with maqashid shariah rules

Rosman R., Syarifah L., Prasojo P., Muhfiatun M.

Journal of Islamic Marketing

Mapping the evolution of Islamic finance for sustainability: a bibliometric analysis

Aslan H., Fodol M.Z.

Sustainability Accounting Management and Policy Journal

Complementary or Substitute: Sharia Financing, Green Financing, and Sustainable Development Goals?

Johan S.

International Journal of Sustainable Development and Planning

Re-Thinking Sustainable Development within Islamic Worldviews: A Systematic Literature Review

Al-Jayyousi O., Saniff S.M., Tok E., Yesuf A.J., Wan Hasan W.N., Janahi N.A.

Sustainability Switzerland

Risk Based bank rating and financial performance of Indonesian commercial banks with GCG as intervening variable

Nurwulandari A., Hasanudin H., Subiyanto B., Pratiwi Y.C.

Cogent Economics and Finance

Comparison of Short-Term and Long-Term Estimation of Syariah Banking Performance

Ahmad M., Putri R.D., Ciptawaty U., Wahyudi H., Mirza Br A.D., Ratih A.

Wseas Transactions on Environment and Development

Access to Document