THE INFLUENCE OF GREEN BANKING IMPLEMENTATION, ISLAMIC SOCIAL REPORTING AND COVID-19 CRISIS ON PROFITABILITY WITH BANK SIZE AS A MODERATING VARIABLE IN ISLAMIC GENERAL BANK PERIOD 2016-2023

Abstract

This study uses bank size as a moderating variable to examine the effects of the Covid-19 crisis, Islamic social reporting, and the deployment of green banking on profitability in Indonesian Islamic commercial banks. In this work, panel data regression and moderated regression analysis are used as data analysis methods. Eleven Indonesian Islamic commercial banks that were registered with the OJK between 2016 and 2023 used as the study's sample. The study's findings show that Islamic commercial banks' profitability is significantly and favorably impacted by ISR. Profitability (ROE) is significantly impacted negatively by the Covid-19 situation, but not ROA. In the meantime, Islamic commercial banks' profitability is unaffected by green banking. The association between green banking and profitability may be moderated by the moderating variable of bank size. This research highlights how crucial risk management, responsibility, and openness are in a period of unpredictable economic times. In the context of Islamic banking, the impact of ISR procedures and reactions to financial crises like COVID-19 is quite significant. Islamic banks should see an improvement in their financial performance in the future by strengthening their ISR management and comprehending the implications of green banking.