Integrating Sustainability into the Strategic Management of Financial Institutions in Developing Economies
(1) Prodi Manajemen, Universitas Gunung Leuser, Indonesia
(*) Corresponding Author
Abstract
This study discusses the role of financial institution management in supporting sustainable development and strengthening the national economy. In the context of globalization and dynamic economic challenges, financial institutions have a strategic role in channeling responsible financing, managing risks effectively, and encouraging sustainability-oriented investment. This study examines how policies, product innovations, and governance implemented by financial institutions can create positive social, economic, and environmental impacts. Through a qualitative approach with literature studies and secondary data analysis, this study found that the integration of Environmental, Social, and Governance (ESG) principles in financial management can encourage inclusive and sustainable economic growth. The results of this study are expected to be a reference for policymakers and financial industry players in designing strategies that balance profitability and sustainability.
Keywords
Full Text:
PDFReferences
Ascarya, A. (2022). Determining the characteristics of waqf-based Islamic financial institutions and proposing appropriate models for Indonesia. https://doi.org/10.1108/IJOES-01-2022- 0001
Barbier, E. B. (2020). Greening the Post-pandemic Recovery in the G20. Environmental and Resource Economics, 76(4), 685–703. https://doi.org/10.1007/s10640-020-00437-w
Cuadro-sáez, L., López-vicente, F. S., Rodríguez, S. P., & Viani, F. (2020). IN THE MAIN EURO AREA ECONOMIES.
Dzigbede, K. D., & Pathak, R. (2020). COVID-19 economic shocks and fiscal policy options for Ghana. Journal of Public Budgeting, Accounting and Financial Management, 32(5), 903–917. https://doi.org/10.1108/JPBAFM-07-2020-0127
Elobeid E Dirar. (2012). The Role of Institutions in Sustainable Development: The Experience of the Sudanese Economy. International Journal of Sustainable Development, 04(05), 201–220.
Hana Mabrukah, A. I. S. (2024). Transformation of Zakat Into Rotating Business Capital: A Sustainable Economic Empowerment Solution. Journal of Islamic Economics and Business Ethics, 1(3), 163–175. https://doi.org/10.24235/jiesbi.v1i2.133
Hermanto, B. (2018). The Role of DSN-MUI to Ensure Shariah Compliance of Islamic Financial Transactions in Indonesia (A Political Ambiguity Perspective). Journal of Islamic Banking and Finance, Vol 6(1), 37–44. https://doi.org/10.15640/jibf.v6n1a3
Hidayatullah, D. R., Darmawan, A., & Kallidumban, S. (2020). Finding the Strategy After the Corona Crisis: The New Normal and Resilient Economy Growth in Indonesia. International Journal of Economics, Business, and Entrepreneurship. https://doi.org/10.23960/ijebe.v3i1.71
Janicka, M. (2016). Financial markets and the challenges of sustainable growth. Comparative Economic Research, 19(2), 27–41. https://doi.org/10.1515/cer-2016-0011
Kaftan, V., Kandalov, W., Molodtsov, I., Sherstobitova, A., & Strielkowski, W. (2023). Socio- Economic Stability and Sustainable Development in the Post-COVID Era: Lessons for the Business and Economic Leaders. Sustainability (Switzerland), 15(4). https://doi.org/10.3390/su15042876
Lestari, S., & Ridho, Z. (2018). Pursuing Economic Growth and Human Development.
Liu, H., & Huang, W. (2022). Sustainable Financing and Financial Risk Management of Financial Institutions—Case Study on Chinese Banks. Sustainability (Switzerland),
(15). https://doi.org/10.3390/su14159786
Mahardika, S. G., & Tanweer, A. (2025). Environmentally Friendly Waqf Model : A Response to Sustainable Economic Development and the Presence of a Circular Economy. JIESBI: Journal of Islamic Economics and Business Ethics, 2(1), 68–93. https://doi.org/10.24235/jiesbiv1i3
Maulana, M. R., & Mawadah, S. (2023). Management of Hajj Funds in Sukuk Investment from an Islamic Economic Perspective. International Conference on Islamic Economics (ICIE), 2(1), 10–35. https://doi.org/10.58223/icie.v2i1.204
Munifatussa, A., & Saleh, K. (2020). Indonesia Monetary Policy During COVID-19 Outbreak : In Islamic Economic Open Access Indonesia Monetary Policy During COVID-19 Outbreak : In Islamic Economic Perspective. American Journal of Humanities and Social Sciences Research (AJHSSR), 4(October), 56–63.
Nour Aldeen, K., Ratih, I. S., & Sari Pertiwi, R. (2022). Cash waqf from the millennials’ perspective: a case of Indonesia. ISRA International Journal of Islamic Finance, 14(1), 20–37. https://doi.org/10.1108/IJIF-10-2020-0223
Nurul Herawati, Bambang Haryadi, Hanif Yusuf Seputro, & Syah, S. (2023). Sustainable Tourism: Exploration of the Potential for Halal Tourism Retribution on the North Coast of Madura. Jurnal Riset Akuntansi Dan Bisnis Airlangga, 8(1), 1435–1451. https://doi.org/10.20473/jraba.v8i1.45188
Park, H., & Kim, J. D. (2020). Transition towards green banking: role of financial regulators and financial institutions. Asian Journal of Sustainability and Social Responsibility, 5(1). https://doi.org/10.1186/s41180-020-00034-3
Rahmayati, R. (2021). Competition Strategy in the Islamic Banking Industry: An Empirical Review. International Journal of Business, Economics, and Social Development, 2(2), 65–71. https://doi.org/10.46336/ijbesd.v2i2.133
Sarangi, N., Taha, H., Zein, S., & Salha, A. (2018). 2018 Report of the Arab Forum for Environment and Development: financing sustainable development in Arab countries (Chapter 1. http://www.afedonline.org/webreport2018/AFEDReport- financingSDinArabCountries2018-.pdf
Sodikin, M. (2020). Competitive Advantages of Sharia Banks: Role of Ihsan Behavior and
Digital Marketing in the New Normal. Journal of Digital Marketing and Halal Industry, 2(1),
https://doi.org/10.21580/jdmhi.2020.2.1.5769
Syamsuri, S., & Wibisono, V. F. (2019). Strategies of Islamic Education Institutions in Fundraising Waqf to Create Economic Independence in the Era of the 4.0 Industrial Revolution. At-Ta’dib, 14(1), 35. https://doi.org/10.21111/at-tadib.v14i1.3532
Syed, M. H., Khan, S., Rabbani, M. R., & Thalassinos, Y. E. (2020). An artificial intelligence and NLP-based Islamic FinTech model combining zakat and Qardh-Al-Hasan for countering the adverse impact of COVID-19 on SMEs and individuals. International Journal of Economics and Business Administration, 8(2), 351–364. https://doi.org/10.35808/IJEBA/466
Ur Rehman, A., Aslam, E., & Iqbal, A. (2021). Intellectual capital efficiency and bank performance: Evidence from Islamic banks. Borsa Istanbul Review. https://doi.org/10.1016/j.bir.2021.02.004
Versal, N., & Sholoiko, A. (2022). Green bonds of supranational financial institutions: On the road to sustainable development. Investment Management and Financial Innovations, 19(1), 91–105. https://doi.org/10.21511/imfi.19(1).2022.07
Widarjono, A., Anto, M. B. H., & Fakhrunnas, F. (2020). Financing risk in Indonesian Islamic rural banks: Do financing products matter? Journal of Asian Finance, Economics and Business, 7(9), 305–314. https://doi.org/10.13106/JAFEB.2020.VOL7.NO9.305
Wusqo, U., Salahuddin, M., & Nafi’ Hasbi, M. Z. (2022). Skill, Professionalism, and Achievement of the Islamic Bank Employee in Ntb, Indonesia. Jurnal Tabarru’: Islamic Banking and Finance, 5(1), 207–215. https://doi.org/10.25299/jtb.2022.vol5(1).9397
Zainol, Z., & Kassim, S. H. (2010). An analysis of Islamic banks’ exposure to rate of return
risk. Journal of Economic Cooperation and Development, 31(1), 59–84.
Zheng, G. W., Siddik, A. B., Masukujjaman, M., & Fatema, N. (2021). Factors affecting the sustainability performance of financial institutions in Bangladesh: The role of green finance. Sustainability (Switzerland), 13(18), 1–27. https://doi.org/10.3390/su131810165 Zidny, M., & Hasbi, N. ’. (2022). How Will Indonesia’s Remittance Value be for The Next 5 Years Due to COVID-19? (Autoregressive Integrated Moving Average Approach). El- Qish: Journal of Islamic Economics, 2(1), 58–67.
https://jurnal.ut.ac.id/index.php/elqish/article/view/4147
DOI: 10.70095/alamwal.v16i1.13435
Article Metrics
Abstract view : 0 timesPDF - 0 times
Refbacks
- There are currently no refbacks.
Indexed by:
Mailing Address:
Department of Sharia Banking, Faculty of Islamic Economics and Business, UIN Siber Syekh Nurjati Cirebon
Jl. Perjuangan By Pass Sunyaragi Kesambi Kota Cirebon
E-Mail: journal.alamwal@gmail.com
Al-Amwal: Jurnal Ekonomi dan Perbankan Syariah is licensed under a Creative Commons Attribution 4.0 International License