Title: Exploring duration gap of Islamic banks during COVID-19 crisis: an inter-regional online focus group study

Authors: Syed Alamdar Ali Shah; Bayu Arie Fianto; Sri Herianingrum; Raditya Sukmana

Addresses: Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, 60286, Indonesia ' Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, 60286, Indonesia ' Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, 60286, Indonesia ' Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, 60286, Indonesia

Abstract: This study explores the duration gap risk management of Islamic banks during the COVID-19 crisis using online focus group studies. There are 12 participants from Indonesia, Malaysia, Pakistan and UAE. Findings suggest that COVID-19 has increased the duration gaps of Islamic banks. The causes include, lack of business opportunities, relaxations in terms of policy rates, restructuring offered by central banks and attitudes of the customers of Islamic banks to avail relaxations offered, whether they need it or not. Finally, the crisis has exhibited that customers have managed their spending according to conventional theories of demands of money and Maslow's hierarchy of needs.

Keywords: COVID-19 crisis; Islamic banks; duration gap risk management; online focus groups; economic growth.

DOI: 10.1504/IJBPM.2022.126226

International Journal of Business Performance Management, 2022 Vol.23 No.4, pp.460 - 472

Received: 16 Oct 2021
Accepted: 23 May 2022
Published online: 17 Oct 2022 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article