MEDIA SENTIMENT AND RISK EXPOSURE: COMPARATIVE INSIGHTS FROM ISLAMIC AND CONVENTIONAL BANKS  IN INDONESIA

Ahmad Syathiri; Suhel Suhel; Yos Karimudin

doi:10.23969/trikonomika.v25i1.42008

Authors

Ahmad Syathiri Universitas Sriwijaya, Indonesia
Suhel Universitas Sriwijaya, Indonesia
Yos Karimudin Universitas Sriwijaya, Indonesia

DOI:

https://doi.org/10.23969/trikonomika.v25i1.42008

Keywords:

capital adequacy ratio, Loan, Banking Risk, Media Sentiment

Abstract

This study examines how economic and political media sentiment influences risk mitigation policies in Islamic and conventional banks in Indonesia. Using monthly banking data from 2012 to 2023 and content analysis of online news, the study applies regression analysis to assess the effects of media sentiment on capital adequacy, loan distribution, and loan loss reserves. The findings show that economic media sentiment significantly affects banks’ capital strength, lending behavior, and provisioning policies, whereas political media sentiment has no significant influence on risk management decisions. The results indicate that banks respond more strongly to economic narratives than political discourse when developing risk and credit strategies. This study contributes to the banking and finance literature by providing comparative evidence from a dual-banking system and highlighting the importance of incorporating economic media sentiment into risk management and financial stability frameworks.

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