Proceedings of the First Mandalika International Multi-Conference on Science and Engineering 2022, MIMSE 2022 (Informatics and Computer Science) (MIMSE-I-C-2022)

Determining Optimization of the Finance Distress Parameters of Islamic Bank by Using Grey Relational Analysis (GRA)

Authors
Sobar M. Johari1, 2, *, Wing-Keung Wong3, 4, 5, Agung Mulyo Widodo6, 7, Sabrina Ayu Ramadhania1
1Department of Sharia Economics, Universitas Muhammadiyah Yogyakarta, Kasihan, Indonesia
2Collage of Management, Asia University, Taichung City, Taiwan
3Department of Finance, Fintech and Blockchain Research Center and Big Data Research Center, Asia University, Taichung, Taiwan
4Department of Medical Research, China Medical University Hospital, Taichung, Taiwan
5Department of Economics and Finance, Hang Seng University of Hong Kong, Hong Kong, China
6Department of Computer Science and Information Engineering, Asia University, Taichung City, 413, Taiwan
7Department of Computer Science, Universitas Esa Unggul, Jakarta, 11510, Indonesia
*Corresponding author. Email: sobar@umy.ac.id
Corresponding Author
Sobar M. Johari
Available Online 26 December 2022.
DOI
10.2991/978-94-6463-084-8_23How to use a DOI?
Keywords
Financial Distress; Islamic Commercial Bank; Grey Relation Analysis (GRA); Panel Data
Abstract

This study aims to identify potential causes of financial distress by combining Grey Relation Analysis (GRA) with internal and external variables of Islamic banking companies in Indonesia. The data utilized is panel data for the period 2015–2019, with an Indonesian sample of five established Islamic banking institutions. The findings of this study indicate that, in general, the factors that allow financial distress to occur in Islamic Commercial Banks are distinct. However, banks must keep an eye out for a few unique factors that may be the primary cause of financial distress in banking institutions. This research also contributes to cautioning Islamic banking institutions regarding the internal management of Islamic banking's sustainability and the anticipation of future financial distress.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the First Mandalika International Multi-Conference on Science and Engineering 2022, MIMSE 2022 (Informatics and Computer Science) (MIMSE-I-C-2022)
Series
Advances in Computer Science Research
Publication Date
26 December 2022
ISBN
10.2991/978-94-6463-084-8_23
ISSN
2352-538X
DOI
10.2991/978-94-6463-084-8_23How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

TY  - CONF
AU  - Sobar M. Johari
AU  - Wing-Keung Wong
AU  - Agung Mulyo Widodo
AU  - Sabrina Ayu Ramadhania
PY  - 2022
DA  - 2022/12/26
TI  - Determining Optimization of the Finance Distress Parameters of Islamic Bank by Using Grey Relational Analysis (GRA)
BT  - Proceedings of the First Mandalika International Multi-Conference on Science and Engineering 2022, MIMSE 2022 (Informatics and Computer Science) (MIMSE-I-C-2022)
PB  - Atlantis Press
SP  - 258
EP  - 268
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-084-8_23
DO  - 10.2991/978-94-6463-084-8_23
ID  - Johari2022
ER  -