The Contribution of Nusantara Moslem Local Tradition on Micro Finance Risk Management in Indonesia

The aim of the study is to explore the local tradition in Bondowoso Pendhalungan society which bases consideration in the risk management of the micro finance sector in Bondowoso. The method of this study was qualitative research used grounded method. We collected data through participatory observa...

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Main Author: Nur Hidayat
Format: Article
Language:English
Published: Faculty of Islamic Economics and Business - Universitas Islam Negeri K.H. Abdurrahman Wahid Pekalongan 2018-01-01
Series:International Journal of Islamic Business and Economics (IJIBEC)
Subjects:
Online Access:http://e-journal.iainpekalongan.ac.id/index.php/IJIBEC/article/view/996
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author Nur Hidayat
author_facet Nur Hidayat
author_sort Nur Hidayat
collection DOAJ
description The aim of the study is to explore the local tradition in Bondowoso Pendhalungan society which bases consideration in the risk management of the micro finance sector in Bondowoso. The method of this study was qualitative research used grounded method. We collected data through participatory observation for 3 years from 2013 until early 2016, semi-structured interviews and literature studies. The results showed the gap that the banks early warning sign (EWS) only considered the financial aspects, the non-financial aspect and transaction aspect, not concerning the cultural aspects. Based on the results of the research, it was found that financial performance in the form of loans, deposits and credit quality (non-performing loans) were affected by the implementation of local cultural tradition. From the results of the study, researchers gave suggestions for banking in Bondowoso and in Indonesia to consider aspects of the local culture or local wisdom as the basis of consideration of banking operations strategies in each region in Indonesia.
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publishDate 2018-01-01
publisher Faculty of Islamic Economics and Business - Universitas Islam Negeri K.H. Abdurrahman Wahid Pekalongan
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series International Journal of Islamic Business and Economics (IJIBEC)
spelling doaj-art-623aae15a21c460bbfe9db29a1e4a4f42025-08-20T02:23:11ZengFaculty of Islamic Economics and Business - Universitas Islam Negeri K.H. Abdurrahman Wahid PekalonganInternational Journal of Islamic Business and Economics (IJIBEC)2599-32162615-420X2018-01-011210.28918/ijibec.v1i2.996996The Contribution of Nusantara Moslem Local Tradition on Micro Finance Risk Management in IndonesiaNur Hidayat0IAIN Jember The aim of the study is to explore the local tradition in Bondowoso Pendhalungan society which bases consideration in the risk management of the micro finance sector in Bondowoso. The method of this study was qualitative research used grounded method. We collected data through participatory observation for 3 years from 2013 until early 2016, semi-structured interviews and literature studies. The results showed the gap that the banks early warning sign (EWS) only considered the financial aspects, the non-financial aspect and transaction aspect, not concerning the cultural aspects. Based on the results of the research, it was found that financial performance in the form of loans, deposits and credit quality (non-performing loans) were affected by the implementation of local cultural tradition. From the results of the study, researchers gave suggestions for banking in Bondowoso and in Indonesia to consider aspects of the local culture or local wisdom as the basis of consideration of banking operations strategies in each region in Indonesia. http://e-journal.iainpekalongan.ac.id/index.php/IJIBEC/article/view/996risk managementlocal cultural traditionearly warning sign
spellingShingle Nur Hidayat
The Contribution of Nusantara Moslem Local Tradition on Micro Finance Risk Management in Indonesia
International Journal of Islamic Business and Economics (IJIBEC)
risk management
local cultural tradition
early warning sign
title The Contribution of Nusantara Moslem Local Tradition on Micro Finance Risk Management in Indonesia
title_full The Contribution of Nusantara Moslem Local Tradition on Micro Finance Risk Management in Indonesia
title_fullStr The Contribution of Nusantara Moslem Local Tradition on Micro Finance Risk Management in Indonesia
title_full_unstemmed The Contribution of Nusantara Moslem Local Tradition on Micro Finance Risk Management in Indonesia
title_short The Contribution of Nusantara Moslem Local Tradition on Micro Finance Risk Management in Indonesia
title_sort contribution of nusantara moslem local tradition on micro finance risk management in indonesia
topic risk management
local cultural tradition
early warning sign
url http://e-journal.iainpekalongan.ac.id/index.php/IJIBEC/article/view/996
work_keys_str_mv AT nurhidayat thecontributionofnusantaramoslemlocaltraditiononmicrofinanceriskmanagementinindonesia
AT nurhidayat contributionofnusantaramoslemlocaltraditiononmicrofinanceriskmanagementinindonesia