STABILITY OF INDONESIA'S FINANCIAL SYSTEM IN THE ERABANKING DIGITALIZATION
Keywords:
Banking Digitalization, Cyber Risk, Financial System Stability, Islamic Finance, RegulationAbstract
Indonesia has experienced a significant acceleration in banking digitalization in recent years. This study aims to explore how banking digitalization affects the stability of Indonesia’s financial system based on literature studies and public reports. The method employed is a literature analysis using secondary data from Bank Indonesia, the Financial Services Authority (OJK), and scholarly journals. The findings indicate that banking digitalization provides substantial opportunities for enhancing financial inclusion, transaction efficiency, and economic growth, but it also poses risks such as cyberattacks, data breaches, and regulatory challenges. To maintain financial system stability, it is necessary to strengthen regulations, improve IT security governance, enhance public digital literacy, and integrate Islamic finance principles, particularly in Islamic banking institutions.
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