Does Financial Inclusive Affect Islamic Banking Probability? Case study in ASEAN 3 – GCC Alliance and the Challenge Faced

Zainuri Zainuri, Sebastian Viphindrartin, Regina Niken Wilantari, Tyas Arthasari

Abstract


The success of a country will be determined by financial system standards,asa driverof economic development, banks need to maximize the role of intermediation. The development of Islamic banks in the world is experiencing an increase in operations in the past few years, in Indonesia Islamic finance is growing fast in global finance beyond conventional banking. The positive image of Islamic banking among the public has placed Islamic finance in Indonesia growing positively during the Covid-19 recession period, one of the keys to the successful development of Islamic finance is various innovations in banking service products to financial instruments and supported by a strong commitment to the implementation of sharia values. . The issue of understanding financial inclusion is currently a topic of discussion among economists and has been established as a national strategy in several countries. A stable financial system is the key to the success of inclusion through development through development. This study will focus on the effect of financial inclusion on the profitability of Islamic banking in ASEAN 3 and the GCC alliance. This research uses mixed research methods using the panel vector error correction model as a research analysis tool to see the time period of the dependent variable and the independent independent variable.


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References


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Proceeding International Conference of Islamic Economics and Business (ICONIEB)

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