CHALLENGES AND INNOVATIONS IN ISLAMIC BANK MANAGEMENT AFTER THE COVID-19 PANDEMIC

Abstract

ABSTRACT
The COVID-19 pandemic has had a significant impact on the stability and
operational activities of the banking sector, including Islamic banks. As financial
institutions adhering to Sharia principles, Islamic banks face dual challenges:
maintaining adherence to Sharia values while adapting to uncertain economic
changes. This study aims to explore the various challenges faced by Islamic banks
after the pandemic, such as increased financing risks, declining asset quality, and
slowing economic growth. Furthermore, this study also reveals various managerial
innovations that have been implemented, such as service digitization, strengthened
risk management, and the development of technology-based financial products
(Islamic fintech). Using a qualitative approach and literature review, the results show
that flexible innovation based on the principles of maqasid sharia is key to the
sustainability of Islamic banks in the post-pandemic era. This research is expected to
contribute to the development of a resilient and crisis-responsive Islamic banking
management strategy.
Keywords: Islamic banks, management, COVID-19 pandemic, innovation, challenges,
digitalization, maqasid sharia