Supervision, Corporate Governance and Macroeconomics Influence on Islamic Bank Risk in Indonesia

Abstract

This study aims to find out; (1) the effect of Supervisory Variables on Sharia Bank Risks, (2) the influence of Corporate Governance Variables on Islamic Bank Risks, (3) the influence of Macroeconomic variables on Islamic Bank Risks, (4) supervision of moderating Corporate Governance on Islamic Bank Risks, and (5) supervision of moderating Macroeconomics on Sharia Bank Risks. This research uses quantitative research methods with a descriptive approach. The data used is secondary data obtained from the IDX, Bank Indonesia, and Islamic bank websites selected as research samples. The results showed that the variables of supervision, corporate governance, and macroeconomics have a significant effect on the risks of Islamic banks. In addition, the results of the study also show that supervision moderates the relationship between corporate governance and Islamic bank risks, as well as between macroeconomics and Islamic bank risks. In the context of Islamic bank risks, supervision is very important to minimize risks that can threaten the business continuity of Islamic banks. Corporate governance and macroeconomic conditions also affect the risks of Islamic banks. Therefore, Islamic bank management must pay attention to these factors in making strategic decisions to reduce the risks of Islamic banks and ensure sustainable business continuity