The Role of Risk Management in Mediating the Effect of Digital Banking on the Stability of Islamic Banks (Jurnal Ragam Pengabdian)

Summary

• The return on assets (ROA) of Islamic perbankan in Indonesia increased from 1,55% in 2021 to 2,15% in 2025.p.2
• Financing to Deposit Ratio (FDR) grew from 70,12% to 81,95%, while BOPO fell from 84,33% to 76,45% over the 2021–2025 period.p.2
• The research sampled 7 Islamic Commercial Banks (BUS) out of a population of 12 BUS registered with the OJK, giving 35 observations.p.7
• The natural logarithm of mobile banking users (LnUserMB) averaged 13,1125 with a standard deviation of 1,9349 across the sample.p.8
• Islamic bank stability measured by Z_Score yielded an average of 328,0997 and a standard deviation of 673,8775.p.8
• Sobel test analysis produced a test statistic of -0,5714 and a p-value of 0,5677, showing no significant mediation effect.p.9

Key insights

1. Digital banking adoption has no statistically significant direct effect on the risk management of Islamic banks.p.1
2. Risk management proxied by NPF does not significantly affect the overall stability of Islamic banks.p.1
3. Digital banking shows no direct statistically significant impact on bank stability measured via Z-score.p.1
4. Risk management through NPF does not act as a mediating variable between digital banking adoption and bank stability.p.1
5. Random Effect Model (REM) was determined as the best panel data regression model following Chow and Hausman tests.p.8
6. Cross-country literature indicates digital financial inclusion improves stability in conventional banks but can be non-significant or negative in Islamic banks.p.4
7. Operational expenditures for technology and fintech competition prevent short-term conversion of digital adoption into bank resilience.p.10