Markov Switching Autoregressive In Information Systems For Improving Islamic Banks

Mahrus Ali, Rahmat Gernowo, Budi Warsito and Faliha Muthmainah

Data and Metadata, 2024, vol. 3, .681

Abstract: Sharia banks operate in several Muslim-majority countries, offering an alternative financial system aligned with Islamic principles. This study aims to develop a web-based information system for measuring the Maqasid Sharia Index (SMI) in real-time to assess the Islamization level of Sharia banks. Financial data from Indonesian sharia banks before and after their merger in 2021 (January 2013–February 2022) were analyzed. The Markov Switching Autoregressive (MSAR) method, with a margin of error of 0.107, was used to predict SMI values several years into the future. The results indicate that while the SMI value is predicted to decrease by 2025, the financial value of the banks is expected to increase. These findings provide valuable insights for improving the operational effectiveness of Sharia-compliant banking systems.

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dbk:datame:v:3:y:2024:i::p:.681:id:1056294dm2024681

DOI: 10.56294/dm2024.681

Access Statistics for this article

More articles in Data and Metadata from AG Editor
Bibliographic data for series maintained by Javier Gonzalez-Argote ().