ANALYSIS OF MARKET RISK MANAGEMENT STRATEGY IN ISLAMIC BANK (Case Study at Bank Mega Syariah Indonesia).

Market risk is one of the risks in Islamic banking that cannot be avoided. If Islamic banking cannot manage market risk properly, it will have an impact on bank profitability or even lead to other risks. Therefore, Islamic banking must create a market risk management strategy to achieve sustainable business growth. This research made Bank Mega Syariah the locus of research. The research method used is qualitative research using the main data source, namely Bank Mega Syariah's 2023 annual report as well as the December 2023 risk exposure and capital report. The results of the research show that Bank Mega Syariah manages market risk based on its fund distribution portfolio, the majority of which is in the form of financing and partly in the form of sukuk securities as a liquidity reserve, does not carry out over the counter trading activities for proprietary trading so market risk exposure is relatively low. The focus is on changing behavior and maintaining customer trust when market benchmark interest rates increase, adjusted to the majority of financing which has a fixed margin. [ABSTRACT FROM AUTHOR]