Two students of International Program of Islamic Economics & Finance (IPIEF) of Universitas Muhammadiyah Yogyakarta (UMY), Dedy Fahrul Rahman (IPIEF 2014) and Muhammad Fikri Maududi (IPIEF 2015) became presenters of The 18^th Malaysian Finance Association Conference (MFAC) and The 7^th Islamic Banking, Accounting, and Finance (iBAF) 2016 in Melaka, Malaysia, on 30 May 2016. They presented research entitled ‘Assessing Islamic Banking Stability in Indonesia’.

Their supervisor, Dimas B. Wiranatakusuma, S.E., M.Ec., informed that the students discussed how to arrange index of Islamic banking stability and how to measure impacts of selected macro variable on Islamic banking instability.

“Employing Logit and Vector Auto Regressive method, will clearly display the development of Islamic banking stability in Indonesia including crisis 2008. Indeed, most of Islamic banking stability in Indonesia has not been contributed by macro variable and it can be seen that instability less likely occurs to Islamic banking. Thus, the Islamic banking instability is often caused by internal weaknesses of the Islamic banking,” Dimas told.

He stated that Islamic banking operationalization is based on assets, speculation avoidance, and tendency of real sector empowerment. “Therefore, the students recommended to optimize micro-prudential policy emphasizing health maintenance and banking endurance from internal parties such as liquidity and credit management. The policy may be able to cope with the Islamic banking weakness,” he expected.

Dimas said that Dedy and Fikri attracted attention of other presenters since they were the only one holding bachelor degree. “The occasion to present in the international conference may encourage other academicians,” he wished.

There were 100 delegates of several Malaysian universities, while the representatives of Indonesia were from UMU and University of Airlangga.