The Response of Islamic Financial Service to the COVID-19 Pandemic: The Open Social Innovation of the Financial System

Abstract

Novel Coronavirus, also known as COVID-19, is a health emergency that is having an ever-growing impact on the global economy. COVID-19 has caused economic disruption at an unprecedented speed and scale. The economic costs it will bring to society can only be measured in times to come. Millions of people across the globe have already become unemployed, and similarly, millions of businesses have either shut down or are on the verge of collapse. It is a great challenge for policymakers to minimize the economic impact of COVID-19 and put the economy on a growth trajectory once again. Unfortunately, there is so far no country in the world that can be viewed as a role model for its economic response to the COVID-19 pandemic. The present study proposes Islamic finance as a potential tool to help affected economies safely pass through the economic crisis resulting from the pandemic. This study identifies a four-stage COVID-19 model and proposes ten innovative Islamic financial services for each stage of the pandemic. In addition, it analyzes how these services can be effectively utilized at different stages to overcome the economic damage caused by the pandemic.

Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID-19: The Open Social Innovation of the Islamic Financial System

“…omplex. 2021, 7, x FOR PEER REVIEW 9 of 19 to poor and vulnerable sections of society to achieve a socioeconomic objective [5,6]. The instruments of Islamic social finance are depicted in Figure 4 below.…”

Performance Bank Bni Syariah Di Masa Pandemi Covid-19

“…Sepanjang tahun 2020 -2021 merupakan tahun yang menantang bagi industri perbankan nasional. Merebaknya Pandemi Covid-19 telah memberikan dampak yang sangat besar terhadap ekonomi dan bisnis di dunia dan juga di Indonesia termasuk pada industri perbankan syariah (Abdulkareem et al, 2021;Abdullah et al, 2021;Albanjari & Kurniawan, 2020;Azhari & Wahyudi, 2020;Hafizah, 2020;Islamic Development Bank, 2020;Rabbani et al, 2021).…”

Islam and the COVID-19 Pandemic: Between Religious Practice and Health Protection

“…Undoubtedly, this attitude of the state administration is influenced by the economic isolation of Iran and sanctions imposed on the country, for example by the USA. Therefore, the government seems to be worried about Iran's weakened economy more than it is worried about the deteriorating health of its citizens (Rabbani, 2021 ). The improper actions of the government in Tehran made Iran the next, after China, large center of the virus epidemic from which it spread in the region.…”