Role Of Financial Institutions Research Articles

Peran Bank Wakaf Mikro Syariah dalam Pemberdayaan Ekonomi Masyarakat (Studi Empiris BWM Ponpes Mawaridussalam)

The problem of poverty and economic inequality has always been a major problem in the presence of social disparities in Indonesian society. The role of financial institutions in the distribution of funding and financing has an important role in empowering the economic activity of the community. This research aims to find out the role of Bank Wakaf Micro Shariah Pondok Pesantren Mawaridussalam in Economic Empowerment of the Society. This study uses qualitative research techniques with a descriptive approach. The types of data used in this study are primary data and secondary data. Data collection techniques are done with observations and interviews. The results of this study show that the role played by Bank Wakaf Micro Shariah Pondok Pesantren in empowering the economy of the community around the mansion is by providing financing and support through weekly activities (halmi). The result of the research is that Mawaridussalam is trained through the Wakaf Micro Bank. The Shariah has a role in empowering the community by providing business capital loans for micro-economy, getting rid of rent and interest bars, increasing daily income and adding religious science.

Performance of Islamic Financial: A Qualitative Study In Improving The Regional Economy

Islamic financial institutions offer resources that the community can employ to expand economic opportunities and strengthen the local economy. The primary competitive and productive force in the national economy is the regional economy. Because of this, the growth of micro, small, and medium-sized businesses must be the nation's top goal in terms of economic development. The purpose of this study is to demonstrate how Islamic financial institutions help local business owners achieve economic development. This kind of research is a literature review, using data sources found by using preset variable keywords to search Google Scholar. The role of financial institutions in the economy, including asset transfers, transactions, liquidity, and efficiency, is covered by the study's findings. The purpose of Islamic financial institutions is to advance and foster the integration of Islamic values, sharia, and customs into banking, finance, and associated industries

PERKEMBANGAN DAN PERAN BANK SYARIAH DALAM MENYONGSONG MASA DEPAN KEUANGAN ISLAM DI INDONESIA

The aim of this research is to explain the development and role of financial institutions that use sharia principles, one of which is sharia banks in welcoming the future of Islamic finance in Indonesia. This research method uses a qualitative method with a type of library research with two types of secondary data, namely published papers in the form of books, reputable scientific articles, journal reviews, and reports from official organizations. The results of this research conclude that Sharia Banks in Indonesia are one of the financial institutions that have the main task of providing credit and services in the field of payments and money circulation accompanied by sharia principles. The development of sharia banks in Indonesia has become a benchmark for the implementation of sharia economics and its existence in Indonesia. The slowdown in the growth of Islamic banks related to the economic symptoms that are occurring can be overcome by consolidation from internal parties. Islamic banks in Indonesia play an important role in the future of sharia finance. The existence of an increase in the quality of sharia banks in national sharia banking does not rule out the possibility of increasing the competitiveness of sharia banks at the global level. Sharia banks have achieved quite rapid achievements considering that the majority of Indonesian people are Muslim.

Impact of terror on international trade in financial services: Does the development of financial institutions matter?

AbstractWe examine the impact of terror on international trade in financial services and the role of financial institutions in alleviating this impact. Using a sample of 67 countries from 2000 to 2020, we find that a 10% increase in the number of terrorist incidents in the importer and/or the exporter results, on average, in a 1.77–2.05% annual reduction in their bilateral financial service trade which is more economically significant than what has been documented for trade in commodities. Top exporters and importers of financial services, however, are less affected by the incidence of terrorism. Confirming the critically important role of systemic stability, we further find that financial institutions' stability (measured by the Z score) is the most powerful factor in mitigating the detrimental impact of terrorism on trade. There is also some limited evidence that exporting countries where financial institutions exhibit more efficiency (measured as the ratio of overhead costs to total assets) cope better with terrorism.

Research on the Impact of Inclusive Finance on Urban-rural Income Inequality in the Context of Rural Revitalization

Inclusive finance has the inherent advantage of fostering rural regeneration. As a result, the role of financial institutions in promoting regional revitalization, which is a national strategy, will be fully clarified, and the income disparity between urban and rural areas can be further reduced. Based mainly on Williamson's concept of economic management, this project analyzes the interaction between the development of inclusive finance and rural regeneration in our country, especially the income gap between urban and rural areas. Conduct comprehensive diagnostic research on the current state of financial inclusion by focusing on analyzing the development status and challenges of inclusive finance in rural areas and clarifying the importance of further development of inclusive finance. Second, taking into account the lessons learned from foreign indicators of comprehensive financial development, the indicators of comprehensive financial development should be considered, taking into account indicators such as financial geographic penetration, financing through product contact, and user friendliness. Establishing a system for measuring the degree, building indicators of rural comprehensive finance based on six perspectives, and based on the data analysis of the above indicators, the development of comprehensive finance will affect the income growth rate between urban and rural residents. We will continue to study the effects on inequality and try to prove that: The development of inclusive finance can effectively reduce the income gap between urban and rural residents. Villagers conclude that inclusive finance plays a positive role in facilitating the expected completion of rural regeneration. Finally, it proposes rationalizations for inclusive finance to play a greater role in reducing the income gap between urban and rural areas.

A Discussion on the Role of Financial Institutions in Fighting Climate Change

The climate change crisis is now a serious issue for the future of human life. This paper analyses the global food and energy crises from a green finance perspective. First, the author provides relevant research and evidence as a preliminary step and, based on relevant facts and reports, proposes adjustments to financial institutions and the distribution of financial resources, respectively, to achieve effective outcomes for future climate change crises.

ІНСТИТУЦІЙНЕ СЕРЕДОВИЩЕ ФІНАНСОВОГО ЗАБЕЗПЕЧЕННЯ СТАЛОГО РОЗВИТКУ ЕЛЕКТРОЕНЕРГЕТИЧНИХ КОМПАНІЙ

The article is devoted to the disclosure of issues, conditions, structures and directions for improving the institutional environment of financial support for the development of the energy sector. The aim of the research: is to determine directions for improving the institutional environment of financial support for the sustainable development of electric power companies under the conditions of implementing financial decisions regarding the attraction and effective use of financial resources and state financial support within the framework of the implementation of national priorities for the development of the electric power industry. The subject of the research: institutional environment and its impact on financial support for the sustainable development of electric power companies. The methods of the research: of scientific knowledge, method of generalization, comparison, logical – meaningful, methods of induction and deduction. The main hypothesis of the study is the assumption that the influence of the institutional environment on the financing of the sustainable development of electric power companies is manifested through legal support, state support (regulation, control, audit of restoration processes) of projects, the development of risk insurance mechanisms, the implementation of methods of optimal allocation of resources according to the priority of restoration programs , deepening the interaction of state institutions with electric power companies on the basis of public-private partnership. The statement of basic materials. On the basis of the analysis of the institutional environment and regulatory and legal support for the activity of energy enterprises, the problematic field of institutional issues in the field of state regulation of the activities of the subjects of the electric energy market and directions for their solution have been determined. The essence of the institutional environment is determined and its influence on financial support for the sustainable development of energy enterprises is demonstrated. The role of financial institutions in ensuring the sustainable development of public companies is shown. Based on the analysis of the state of financial support for the development of the energy sector of Ukraine, it was established that financial and credit institutions have a limited influence on the formation of financial resources of enterprises in the energy sector. Attention is focused on the need to implement international experience in financing the sustainable development of energy enterprises. The institutional conditions for financial support for the development of electric power companies are disclosed and restraining factors regarding the attraction of investment resources are identified. The characteristics of financing tools for the sustainable development of energy sector enterprises are given. It is proved that the institutional environment of market relations is directly a lever of influence on the reproductive processes of capital formation of energy enterprises. The directions for improving regulatory legislation, the state policy of financing the development of the energy sector in the context of the selection of mechanisms for stimulating the development of the electric power sector, including RES, and supporting the development of new technologies are substantiated; use of world experience. The originality and practical significance of the research: have proposals regarding the use of financing tools for the sustainable development of energy sector enterprises and the determination of directions for improving the state financing policy in the context of choosing mechanisms for stimulating the development of the electricity sector. Conclusions and perspectives of further research: The institutional influence on financial support for the development of the energy sector is manifested through: improvement of regulatory legislation in the context of creating favorable conditions for supporting the decarbonization of the Ukrainian economy and the post-war recovery of energy enterprises; state financial support for stimulating the participation of banks in the post-war restoration of ecological technologies, increasing the share of RES generation in the Ukrainian energy system; the development of mechanisms for the removal of tax restrictions (in particular, regarding gas rent and the ban on imports) and the creation of mechanisms for guaranteeing military risks; implementation of methods of optimal distribution of resources according to post-war reconstruction programs, taking into account their priority and strengthening of financial control, transparency regarding targeted use; creation of favorable conditions for lending, taking into account world practices. In order to achieve ecologically safe, socially oriented economic development, it is expedient to apply world experience and effective methods and forms of mobilization of financial resources in the field of electricity.

Forecasting nonperforming loans using machine learning

AbstractNonperforming loans play a critical role in financial institutions' overall performance and can be controlled by forecasting the probable nonperforming loans. This paper employs a series of machine learning techniques to forecast bank nonperforming loans on emerging countries' financial institutions. Using quarterly cross‐sectional data of 322 banks from 15 emerging countries, this study finds that advanced machine learning‐based models outperform simple linear techniques in forecasting bank nonperforming loans. Among all 14 linear and nonlinear models, the random forest model outperforms other models. It achieves a 76.10% accuracy in forecasting nonperforming loans. The result is robust in different performance metrics. The variable importance analysis reveals that bank diversification is the most critical determinant for future nonperforming loans of a bank. Additionally, this study revealed that macroeconomic factors are less prominent in predicting nonperforming loans compared with bank‐specific factors.

Retail two-tier Model of the Digital Ruble (Model D) — the Way to the Appearance of a single-tier Banking System in Russia

The article examines the changes that will be made to the legislation of the Russian Federation in connection with the introduction by the Bank of Russia of the retail model of the digital ruble (model D). The legal analysis was carried out on the basis of two concepts of the digital ruble (2020 and 2021) developed by the Bank of Russia, as well as a package of bills on amendments to the Civil Code of the Russian Federation, Federal Law No. 161-FZ of June 27, 2011 “On the National Payment System” and a number of other laws. As a result of the analysis of the retail two-tier model of the digital ruble with the role of financial institutions as settlement participants (model D), it was concluded that, according to the proposed mechanism, the Bank of Russia is forced to enter into contractual legal relations not only with credit institutions, but also directly with their clients — individuals and legal entities. It is reasonable to distinguish the levels of the banking system depending on what kind of clientele the respective bank serves. If a bank provides banking services to customers who do not have the status of a credit institution, then this is a second-tier bank. If the bank serves clients with the status of a credit institution, then this is a first-tier bank of the banking system. The introduction of Model D in the form in which it is described in the Concept of the Bank of Russia for 2021 and in the package of bills will actually erase the differences between the two levels of the banking system.

The Role of Financial Institutions In Financial Inclusion in the Krupuk Industry SMEs The Karangmluwo Mangli Kaliwates Community, Jember

The objective of the financial inclusion program is to eliminate all forms of barriers to public access to the use of financial services supported by existing infrastructure. Thus the SMEs community will easily overcome the problem of lack of capital by getting easy financing services from banks, in this study conducted on the SMEs community in the Karangmluwo cracker industry. However, can the SMEs community of the Karangmluwo cracker industry as a whole be able to feel the benefits of the financial inclusion program? Until this research formulated the formulation of the problem: What is the role of financial institutions in financial inclusion in the Karangmluwo cracker industry SMEs?, what are the arguments of the Karangmluwo cracker industry community who are reluctant to collaborate with financial institutions? crackers Karangmluwo?. This study uses a descriptive qualitative approachand the results of research on several SMEs in the cracker industry of the Karangmluwo community, Mangli Kaliwates Jember, show that the benefits of the financial inclusion program are still not evenly distributed, it is proven that there are still Karangmluwo cracker industry communities who are reluctant to collaborate with financial institutions because of the complicated requirements and lack of socialization from the financial institutions. However, there are also some industrial communities in Karangmluwo who can benefit from this financial inclusion

Does country risk moderates the financial market development and shadow economy nexus? Evidence from fast-emerging countries analysis

PurposeThe shadow economy (SE) has been a serious issue with varied dimensions in all countries that significantly affect economic growth. Therefore, all countries have made an effort to tackle the SE by pursuing several measures. This study aims to investigate the impact of financial markets (stock and bond) in reducing the SE while considering the role of country risk (political, economic and financial) in N-11 countries.Design/methodology/approachThe study employed first-generation methodological techniques, including a unit root test to identify stationarity in the series, a panel cointegration test and panel autoregressive distributive lag (ARDL) to estimate long-run and short-run relationships. Finally, the Granger causality is applied to determine the direction of the causal relationship.FindingsThe study explored that country risk factors are crucial in reducing the size of the SE. Moreover, the significant moderating role of country risk factors in the financial market development and SE nexus suggests that by controlling the country's risk, financial market development can negatively affect the SE.Research limitations/implicationsDue to the availability of data, the study used data, ranging from 1995 to 2015, because the tax burden data is available from 1995 while the maximum data for the SE is available till 2015, using Medina and Schneider's (2019) data estimates for the SE.Originality/valueThe previous studies have focused explicitly on the role of financial institutions' development in the SE. To the best of the author's knowledge, no previous study is attempted to investigate the role of financial markets (bonds and stock) in the size of the SE. Furthermore, previous studies have ignored the important role of country risk factors in the size of the SE. This study investigates the impact of country risk on the SE and the moderating role of country risk in the development of financial markets and the SE nexus.

Utilization of Blockchain and the Roles of Banks in Indonesia in Tackling Environmental Challenges: A Qualitative Research

This dissertation investigates the readiness of the blockchain technology to be utilized in the upcoming Indonesia’s Emissions Trading Scheme, also the roles of banks and digital banks in the ETS using PESTEL analysis. The study found that Indonesia still lacks the infrastructure to implement the blockchain technology, while banks in Indonesia has huge roles in the scheme including preparing the infrastructure. With a large and growing population, Indonesia has the potential to develop the human resources necessary for blockchain development. However, finding skilled programmers remains difficult. The relationship between blockchain and the environment is also examined, with experts debating its potential benefits and drawbacks. In addition, the thesis analyzes Indonesia’s efforts to mitigate and adapt to climate change, including its participation in international agreements and infrastructure improvements. Finally, the thesis considers the role of financial institutions in promoting emissions trading and the challenges they face in doing so. Overall, the thesis highlights the complex and interconnected factors that influence the adoption and development of blockchain technology in Indonesia.

Developments in Corporate Governance in Central and Eastern Europe

The countries of western Europe have seen far reaching corporate governance developments in recent years, ranging from the Cadbury Report in the UK to the Vienot Report in France. These developments have been discussed in toto in the report of the CEPS working party on corporate governance in Europe. However alongside the developments in western Europe, there are fundamental political and economic changes going on in the countries in Eastern and Central Europe (CEEC) which have significant implications for the development of corporate governance in these countries. In this paper we analyse the changes that have taken place in a number of CEEC countries, highlighting both the commonalities and the differences, and the way that these countries are developing in terms of their corporate governance structures. The demise of central planning, for example, has led to a shift of control, and we seek to examine such issues as where control now lies, the effects of privatisation, and the problems of development of institutional arrangements for corporate governance. Financial institutions have a key role to play in the changes in the CEEC and therefore the latter part of the paper places a special emphasis on the role of financial institutions, particularly banks, as monitors in the CEEC, and analyses the banks' role in firms' restructuring. The implications for the role of banks in any developing corporate governance system are immense, with banks playing a central role as monitors of corporate success. However the privatisation of banks and firms is not, per se, sufficient to ensure that these enterprises develop adequate corporate governance structures which are able to cope with problems endemic in the current framework, and are capable of evolving to take account of future changes. We examine the existing structures in several CEEC, and provide a taxonomy of changes that have occurred to date. We discuss likely future changes and conclude on the likely effects on corporate governance in the CEEC.

The Emergence of Zimbabwe's Economy and Its Persistent Obstacles

Zimbabwe’s economy has had a tumultuous history since gaining independence in 1980. Initially, the economy was buoyed by favourable foreign investment and a flourishing agricultural sector. However, in the 1990s and 2000s, a combination of hyperinflation, sanctions, and mismanagement led to a collapse of the economy. In recent years, Zimbabwe has made progress in stabilizing its economy and has seen modest growth. Despite this progress, the country still faces numerous persistent obstacles to further economic growth. This paper will explore the emergence of Zimbabwe’s economy since its independence and examine the main obstacles that have impeded further growth. It will discuss the causes of Zimbabwe’s economic collapse in the 1990s and 2000s, and how the government has attempted to address these issues. Additionally, it will look at the impact of external factors such as sanctions and foreign investment on the economy, as well as the role of financial institutions and other organizations in promoting economic development. Finally, it will provide an assessment of whether or not Zimbabwe’s economy is likely to continue to grow in the future and what additional measures may be necessary for it to do so. Through an analysis of Zimbabwe’s economic history and the current challenges it faces, this paper will provide valuable insight into the obstacles that must be overcome for the country to achieve long-term economic growth. It will also identify potential steps that may be taken to ensure the continued success of Zimbabwe’s economy and help to inform future economic policy.

Peran Lembaga Keuangan dalam Mendorong Usaha Kecil dan Menengah di Masa Pemulihan Pandemi Covid-19 (Studi Kasus Kawasan Wisata Religi Makam Gus-Dur)

The COVID-19 pandemic has made UMKM activists at Gus Dur's grave experience very minimal income due to the lack of visitors. In November 2021, the religious tourism area of Gus Dur's tomb was reopened, and the situation of micro, small and medium enterprises there was not very normal, where traders needed capital to restart their businesses and save for urgent needs. Therefore, the purpose of this study is to determine the situation of micro, small and medium enterprises during the recovery period from the COVID-19 pandemic and the role of financial institutions. This study uses a qualitative method with a case study approach adapted from Robert K. Yin. The results of this study indicate that although the situation there is not normal and financial institutions function as fund collectors and fund distribution.

The Main Prerequisites for Sectoral Financial and Credit Cooperation Between Territorial Communities, Objects of the Nature Reserve Fund of Ukraine, and Environmental-Oriented Entrepreneurs: Theoretical Aspects

In the context of the decentralisation reform, the objects of the nature reserve fund have an outstanding potential for the economic and environmental development of territorial communities and promotion of the region on the national market. The purpose of the study is to develop theoretical and methodological provisions regarding the development of mechanisms for cooperation between territories and objects of the nature reserve fund of Ukraine, territorial communities and financial institutions, the development of stable intersectoral relations and the emergence of new vectors of economic activity that would meet the modern needs of society. The method of quantitative literature review (meta-analysis) was used during the investigation of the practice of financial and credit cooperation between territorial communities, state authorities and administrations of protected areas. Using the systematisation, destructive factors were identified and the main conflicts of regulatory, economic and organisational nature were identified, which can weaken and slow down the latest transformations in the post-military economic space of Ukraine, especially in terms of financial and credit cooperation with banking and other financial institutions. Using the comparison, the main vectors of cooperation between eco-oriented representatives of the private sector of the economy and financial institutions, which are typical for EU countries, and the possibilities of their implementation in the national economic system were identified. The study suggests using commercial lending tools to develop the economic potential of protected areas and innovative forms of business management. Lending is considered as an industry-specific institution of financial support for environmental-oriented entrepreneurs who carry out their economic activities in protected or adjacent territories. As a result of the conducted research, the essence and role of financial institutions, in particular credit unions, in the system of balanced economic and ecological development of protected areas and environmentally oriented economic activities are determined. Mechanisms for the establishment of protected areas as subjects of market relations that have investment attractiveness for various sectors of the national economy are proposed. It is proved that the economic and environmental development of protected areas requires constant extra-budgetary investment flows, through cooperation not only with environmental-oriented entrepreneurs but also with financial institutions. The establishment of a system of cooperation between institutions of the nature reserve fund, banking and other financial organisations, representatives of business groups, state authorities and territorial communities would ensure the development of a favourable investment environment for eco-business, the comprehensive development of the ecosystem “man-nature-business” and the emergence of new vectors of economic and environmental inclusion in the regions, the establishment of nature reserves and other protected areas as socio-economic and cultural hubs

IMPACT OF INFLATION RATE AND EXCHANGE RATE ON THE PROFITABILITY OF FINANCIAL INSTITUTIONS: A PANEL DATA ANALYSIS FROM PAKISTAN

annual balance sheets, statements and reports of respective banks, State Bank of Pakistan and IMF were the data source. ARDL model was applied as an estimation technique. The return on assets was used as a proxy for profitability while real GDP and interest rate were used as control variables. The results of this study showed that inflation has a negative and significant influence on return on assets (ROA). Theoretically it revealed that due to inflation, when purchasing power of general public declines they can save less money and it effect the saving amounts in banks deposits and hence disbursed less loans to individuals for investment. Exchange rate influence the profitability positively and significantly. The economic growth impact on profitability is positive and significant on 1% level. ECM coefficient measures the speed of adjustment in disequilibrium and its value was -0.632 indicating that any change in inflation and exchange rate is corrected by 62.36% per year. The study suggested that government should maintain more flexible exchange rate for price stability. The role of financial institutions in economic growth and should strengthen by lower interest rate for prospective entrepreneurial activities. Keywords: inflation, exchange rate, profitability, financial institutions, return on assets.

The Role of Islamic Banks in Improving the Economy through Microfinance During the Covid-19 Pandemic

At the end of 2019 there was a global change due to the corona virus, the virus known as covid-19 first appeared in the city of Wuhan, China. WHO officially announced this respiratory virus as a pandemic in early 2020. This virus causes the death rate to continue to increase both in Indonesia and in the world. This virus affects various sectors, one of the sectors most affected is the economic sector. The virus that brought the community's economy also declined drastically because this outbreak caused a lot of decline in the wheels of community business. Many companies are laying off their employees so that the banking sector, industry and others are affected. The unemployment rate is increasing, and also in the micro-economic sector, many MSMEs have decreased and even went bankrupt. MSME turnover has decreased while MSMEs need capital assistance for their business. To handle and support MSMEs, the role of financial institutions is very much needed. One of the financial institutions that play a role in providing capital for MSMEs is Islamic banking. Because Islamic banking focuses on the real sector. Even so, Islamic banks need a strategy before providing financing so that Islamic banks can maintain financial stability during the pandemic. In this study used descriptive qualitative methods, which this research uses field studies to obtain accurate information by conducting interviews, data analysis and data credibility to get good results. So we know that during the pandemic there are banks providing concessions. And the policy is carried out on each financial institution which has its own policy. Noble from reducing the amount of installment fees and so on.

Strategi Bank Syariah Dalam Pembiayaan Mikro pada Masa Pandemi Covid-19


 
 
 At the end of 2019 there was a global change due to the corona virus disease which was then called Covid-19 which first appeared in Wuhan, China. WHO officially announced this respiratory virus as a pandemic in March 2020. Covid-19 has caused the death rate to continue to increase both in the world and in Indonesia. Covid-19 affects various sectors, one of the sectors most affected is the economic sector. It is known that during the Covid-19 pandemic, Indonesia's GDP decreased, the unemployment rate increased, and also in the microeconomic sector many MSMEs experienced a decline in business and even bankruptcy. Whereas MSMEs are one of the most influential sectors for GDP in Indonesia. MSME turnover has decreased while MSMEs need capital assistance for their business. To overcome and support MSMEs, the role of financial institutions is very much needed. One of the Financial Institutions that plays a role in providing capital for MSMEs is Islamic Banking, this is because Islamic Banking focuses on the real sector, even though on the Islamic Banking side there needs to be a strategy before providing financing so that Islamic Banking can maintain financial stability during this pandemic. Therefore, this research is entitled: Strategy of Islamic Banks in Microfinance during the Covid-19 Pandemic (Case Study of BSI KCP Sentul). With the formulation of the problem; (1) Problems encountered in microfinance at BSI KCP Sentul during the pandemic; (2) Solutions to problems encountered in microfinance at BSI KCP Sentul during the pandemic; (3) Strategy of BSI KCP Sentul in microfinance during the pandemic. The method used is descriptive qualitative by interviewing 3 people from BSI KCP Sentul. This study uses primary data, namely interviews. The results of this study are: (1) the problems faced are in the form of internal problems which include performance such as weak financing analysis, limited human resources in the field of financing settlement, weaknesses in bank policies that apply high product prices, and also access to Islamic banking which is still difficult to reach. Meanwhile, the external problems faced in the form of problems stemming from the character of customers, covid-19, government regulations, and the legality of MSMEs; (2) The solution from the internal banking side is to carry out managerial supervision of the Bank and conduct regular communication to customers, improve the capacity of human resources in terms of micro-financing, and provide indirect financing through BPRS; (3) The first banking strategy is to provide financing to MSMEs that are not significantly affected by Covid-19, establish a microfinance service center, and provide lower margins.
 Keywords: Covid-19, MSMEs, Islamic Banking.

Strategi Bank Syariah Dalam Pembiayaan Mikro pada Masa Pandemi Covid-19


 
 
 At the end of 2019 there was a global change due to the corona virus disease which was then called Covid-19 which first appeared in Wuhan, China. WHO officially announced this respiratory virus as a pandemic in March 2020. Covid-19 has caused the death rate to continue to increase both in the world and in Indonesia. Covid-19 affects various sectors, one of the sectors most affected is the economic sector. It is known that during the Covid-19 pandemic, Indonesia's GDP decreased, the unemployment rate increased, and also in the microeconomic sector many MSMEs experienced a decline in business and even bankruptcy. Whereas MSMEs are one of the most influential sectors for GDP in Indonesia. MSME turnover has decreased while MSMEs need capital assistance for their business. To overcome and support MSMEs, the role of financial institutions is very much needed. One of the Financial Institutions that plays a role in providing capital for MSMEs is Islamic Banking, this is because Islamic Banking focuses on the real sector, even though on the Islamic Banking side there needs to be a strategy before providing financing so that Islamic Banking can maintain financial stability during this pandemic. Therefore, this research is entitled: Strategy of Islamic Banks in Microfinance during the Covid-19 Pandemic (Case Study of BSI KCP Sentul). With the formulation of the problem; (1) Problems encountered in microfinance at BSI KCP Sentul during the pandemic; (2) Solutions to problems encountered in microfinance at BSI KCP Sentul during the pandemic; (3) Strategy of BSI KCP Sentul in microfinance during the pandemic. The method used is descriptive qualitative by interviewing 3 people from BSI KCP Sentul. This study uses primary data, namely interviews. The results of this study are: (1) the problems faced are in the form of internal problems which include performance such as weak financing analysis, limited human resources in the field of financing settlement, weaknesses in bank policies that apply high product prices, and also access to Islamic banking which is still difficult to reach. Meanwhile, the external problems faced in the form of problems stemming from the character of customers, covid-19, government regulations, and the legality of MSMEs; (2) The solution from the internal banking side is to carry out managerial supervision of the Bank and conduct regular communication to customers, improve the capacity of human resources in terms of micro-financing, and provide indirect financing through BPRS; (3) The first banking strategy is to provide financing to MSMEs that are not significantly affected by Covid-19, establish a microfinance service center, and provide lower margins.
 Keywords: Covid-19, MSMEs, Islamic Banking.