Abstract:Introduction: The Covid-19 pandemic is unique because the financial sector is usually affected earlier when a shock occurs, but in this incident, the real industry is more affected. Differences of opinion regarding procyclicality maintain the importance of early indication.
Methods: This study aims to reexamine procyclicality in Islamic banking using the VAR/VECM method.
Results: The results show that Islamic banks are proxies that support economic development without causing bubbles.
Conclusion and suggestion… Show more
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