This paper investigates the main determinants of banking stability in Indonesia. Totaling 11 Islamic commercial banks in Indonesia covering the period between 2013 until 2017. The measure of banking stability is Z-score, thereby allowing analysis of banking stability determinants from three complementary perspectives: competition, bank size, and capital buffer. The method to explain this study is regression. The findings indicate that competition, bank size and capital buffer improve the stability significantly when the level of them increases. The results highlight the importance of institutional quality for banking stability in Indonesia. Banking supervisors in Indonesia countries should consider the role of financial structure and institutional quality for banking stability.
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In-Text Citation: (D, Nusantara, Laba, Ali, & Soebarsah, 2019)
To Cite this Article: D, L. A., Nusantara, S. T. D., Laba, A. R., Ali, M., & Soebarsah, M. (2019). Determinants of Islamic Banking Stability in Indonesia. International Journal of Academic Research in Business and Social Sciences, 9(7), 654–669.
Copyright: © 2019 The Author(s)
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