Islamic Rural Bank in Indonesia has experienced an increase of total asset and total financing but showed a decrease of profitability. Analysis of profitability determinants will contribute in increasing Indonesian Islamic Rural Bank profitability. This research aims to analyze Islamic Rural Bank profitability determinants in the short and long run. It applies dynamic model of Error Correction Model (ECM) to find several internal and external factors that influence Islamic Rural Bank profitability in the short and long run. The results of this research can show variables that have a positive and negative effect in the short and long run. Mudharabah Time Deposit becomes dominant variable in affecting Islamic Rural Bank profitability in the short run and has negative effect. Non Performing Financing becomes the dominant variable in the long run and also has negative effect. The dominant variables in the short and long run both have negative effects. It can show why Islamic Rural Bank has experienced a decrease in profitability.
Mapping and Correlation Analysis of Efficiency and Profitability: The Case of Islamic Rural Bank in Indonesia. This research aims to analyze efficiency and profitability of Islamic Rural Banks in Indonesia using Variable Returns to Scale model of Data Envelopment Analysis and efficiency-profitability matrix. The results of this research show that most of Islamic Rural Banks are included in the Dog quadrant (high efficiency but low profitability) and Sleeper quadrant (low efficiency but high profitability). Meanwhile, the result of correlation analysis between efficiency and profitability indicates that efficiency has a negative correlation with profitability. Negative correlation of efficiency and profitability is in accordance with the result of efficiency-profitability matrix. The results of this research show that not all of Islamic Rural Bank which have high efficiency are also having high profitability.
This research aims to analyze the influence of United State Economic Policy Uncertainty, Tiongkok Economic Policy Uncertainty, and Japan Economic Policy Uncertainty on the Jakarta Islamic Index. This study used time-series data from January 2001 to December 2019 and Error Correction Model (ECM) to analyze the short-term and long-term effects of United State, Tiongkok and Japan Economic Policy Uncertainty on the Jakarta Islamic Index. The results of this research show that United State EPU and Tiongkok EPU have no short-term and long-term effect on Jakarta Islamic Index. Meanwhile, in the short-term, Japan EPU has a significant influence on the Jakarta Islamic Index but has no long-term influence.
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