A PRELIMINARY STUDY ON CONSTRUCTING SHARIA BANKING RESILIENCE (SHABAR) INDEX IN INDONESIA
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Given the fact that financial crisis, as manifestation form of the financial instability, becomes more frequent, complex and severe, it is importance to examine various tools that can monitor resilience of financial institution especially banking system that has significant role in economy of a country. Though Islamic banking operates within the similar financial environment, its fundamental differences call for different treatment in building resilience. The existing literature on banking surveillance tools is either mostly for banking in general or is dominated by partial development. Hence, there is significant gap in the literature to address the specificities of Islamic banking and comprehensive banking surveillance tools analysis to build resilience that can contribute to financial stability in a country. This study explores this gap in case of Indonesia. The study notes that optimum resilience level of sharia banking in Indonesia exist in spesific range as the result of contribution every single indikator build it. Moreover the study makes possible for tracking of which indicator contribute to the instability of sharia banking system in Indonesia.