This research proposes a development of Early Warning System (EWS) model towards the financial performance of Islamic bank using financial ratios and macroeconomic indicators. The result of this paper is ready-to-use algorithm for the issue that needs to be solved shortly using machine learning technique which is not widely applied in Islamic banking. The research was conducted in three stages using Artificial Neural Networks (ANNs) technique: the selection of variables that significantly affect financial performance, developing an algorithm as a predictor and testing the predictor algorithm using out of sample data. Finally, the research concludes that the proposed model results in 100% accuracy for predicting Islamic bank’s financial conditions for the next two consecutive months.
| Published by | Bank Indonesia |
| Journal Name | Buletin Ekonomi Moneter dan Perbankan |
| Contact Phone | - |
| Contact Name | - |
| Contact Email | - |
| Location | Kota adm. jakarta pusat, Dki jakarta INDONESIA |
| Website | BEMP| https://www.bmeb-bi.org/index.php/BEMP| |
| ISSN | ISSN : 14108046, EISSN : 24609196, DOI : -, |
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| Meta Subject | |
| Meta Desc | The Buletin Ekonomi Moneter dan Perbankan/Bulletin of Monetary Economics and Banking (BMEB) is an international peer-reviewed journal. This is a quarterly journal, published in January, April, July and August. The BMEB focuses on a broad range of topics covering monetary economics, banking, macro-prudential, payment systems, financial stability, financial markets, and economic growth (including policy coordination) that are of global relevance. This BMEB’s scope is global and the journal endeavors to publish high quality research that makes a contribution to the literature and/or has an impact on policy making. In this regard, the BMEB welcomes research papers from both central bank and non-central bank economists, academics and policy makers. |
| Penulis | Ali, A.M Hasan |
| Publisher Article | Bank Indonesia |
| Subtitle Article | Buletin Ekonomi Moneter dan Perbankan Vol 20 No 3 (2018): JANUARY 2018 |
| Scholar Google | http://scholar.google.com/scholar?q=%2Bintitle%3A&… |
| View Article | https://www.bmeb-bi.org/index.… |
| DOI | https://doi.org/10.21098/bemp.v20i3… |
| DOI Number | DOI: 10.21098/bemp.v20i3.856 |
| Download Article [1] | https://www.bmeb-bi.org/index.php/BEMP/a… |
| Download Article [2] | http://download.garuda.ristekdikti.go.id… |