Analysis Of Macroeconomic Factors On Operational Risk In Islamic Banking In Indonesia And Turkey For The Period 2017–2024

Islamic banking has a contribution to the Islamic financial system which is oriented towards the principles of justice, partnership and economic sustainability. This study aims to analyze the influence of macroeconomic factors on operational risk in Islamic banking in Indonesia and Turkey during the period 2017–2024. The macroeconomic factors used are inflation, interest rates, GDP, and money supply, while operational risk is proxied by the ratio of operating costs to operating income (BOPO). This study uses a quantitative approach with a panel data regression method processed using the EViews application. Secondary data were obtained from the annual reports of Islamic banks, the World Bank, and the Turkish financial authorities. The results show that partially, inflation, interest rates, and GDP have no significant effect, while money supply has a significant positive effect on operational risk in Indonesia. Similarly, the variables of inflation, interest rates, GDP, and money supply do not significantly affect operational risk in Turkey. These findings indicate that the operational efficiency of Islamic banking is more influenced by internal factors such as cost management, asset quality, and operational policies, compared to macroeconomic conditions. This study is expected to provide an empirical contribution in strengthening risk management strategies and formulating macroprudential policies for the Islamic banking industry in both countries.