EFFECT OF CAPITAL ADEQUACY, LIQUIDITY, AND OPERATIONAL EFFICIENCY  TO PROFITABILITY IN BANK SYARIAH MANDIRI  (Period 2008 s.d. 2015)

Ismaulina, Ismaulina; Zulfadhli, Zulfadhli

doi:10.31958/juris.v15i1.487

Cited by 4 publications

(5 citation statements)

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“…Therefore, bank's management must be very careful in managing the bank so that operational costs were not too high. Banks must be able to maintain cost efficiency by reducing unnecessary costs (Ismaulina and Zulfadhli, 2016). These results supported the results of research by Adeyinka (2013) and Ariyani (2010) which discovered that OCOI had a significant and negative effect on profitability.…”

Section: Hypothesis Test Resultssupporting

confidence: 81%

“…These results supported the research of Sutrisno (2016), Akhtar et.al (2011 and Syafri (2012) which discovered that CAR had a significant but negative effect on bank's performance. Likewise, the findings of Ismaulina andZulfadhli (2016) andNorman et.al (2015) also discovered a significant and negative effect between CAR and profitability.…”

Section: Hypothesis Test Resultsmentioning

confidence: 82%

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Islamic Banks’ Risks and Profitability A Case Study on Islamic Banks in Indonesia

Sutrisno

2020

KINERJA

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The development of Islamic banks shows excellent growth in terms of assets, third party funds, and financing. However, the growth of Islamic banks, which is approximately 5%, is relatively small nationally. For this reason, researches on Islamic banks always attracts attention. The purpose of this study is to analyze the factors that influence the profitability of Islamic banks. The profitability of Islamic banks is measured using return on assets (ROA), while the factors suspected of affecting profitability are capital risks are measured using the capital adequacy ratio (CAR), financing risk is measured using non-performing financing (NPF), operating risk is measured using operational costs to operational income ratio (OCOI), and company’s size (SZ). The population of this study is 13 Islamic banks with a sample of 7 banks implementing a purposive sampling method. The observation period is 8 years (2011-2018), with quarterly data. The analysis tool to test the hypotheses is multiple regression. The results showed that capital risk (CAR) had a significant but negative effect on profitability, operating risk (OCOI) had a significant but negative effect. While financing risk (NPF) and company’s size (SZ) had no significant effect on profitability.Keyword: capital risks, financing risks, operational risks, profitability

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Section: Hypothesis Test Resultssupporting

confidence: 81%

Section: Hypothesis Test Resultsmentioning

confidence: 82%

Islamic Banks’ Risks and Profitability A Case Study on Islamic Banks in Indonesia

Sutrisno

2020

KINERJA

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“…Therefore, bank management must be very careful in managing the bank so that operational costs are not too high. Banks must be able to maintain cost efficiency by reducing unnecessary costs (Ismaulina & Zulfadhli, 2016).…”

Section: Risk Management Factors Namely Operational Risk (Bopo) Affec...mentioning

confidence: 99%

Implementation of Risk Management and Capital Structure on Financial Performance: A Study of Islamic Banking in Indonesia

Nihayah

Aryani

2022

JBMS

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This study examines the influence between risk management and capital structure on the financial performance of Islamic Commercial Banks (BUS) in Indonesia with 3 measurement proxies, namely ROA, ROE, and zakat. ROA's financial performance will be used as a key proxy in this study. Meanwhile, ROE and zakat will be used as additional proxies to see the difference in results between the three of them. Risk management is measured by parameters of credit/financing risk management (NPF), liquidity risk (FDR), and operational risk (BOPO). Meanwhile, capital structure is measured using the ratio of CAR and DER. This study also added five control variables: company size, income stability, asset growth, third-party funds, and financing. This study used panel data and purposive sampling techniques to determine the sample. Data obtained is on published financial statements of Islamic commercial banks for 2008-2019. The data analysis technique used is a multiple regression analysis technique using E-views 9 program. The results showed that BOPO and CAR variables affected financial performance (ROA), while NPF, FDR, and DER have no effect on financial performance (ROA), and there were inconsistencies in results with ROE and Zakat proxies.

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“…Several studies have found that the capital adequacy ratio (CAR) has a significant but negative effect on bank performance. A study by Ismaulina and Zulfadhli (2017), for instance, found that CAR has a negative but significant effect on a bank's performance variable, the ROA. A similar finding was also revealed by Hersugondo, Anjani, and Pamungkas (2021) and Juwita, Raga, Prasetyo, and Rimawan (2018).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Do Liquidity and Capital Adequacy Ratio Matter for Islamic Banks Performance in Indonesia? An Analysis Using Financing Risk as Mediator

Safitri

Rahmati²,

Jayadi

et al. 2021

SJEKI

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This study is driven by the inconsistent findings of previous research on assessing the determinants of banks' performance. In addition, financing risk has been indicated as a significant variable in mediating the related research but failed to incorporate in previous research. Therefore, this study aims to assess the role of liquidity and Capital Adequacy Ratio (CAR) on Islamic bank's performance in Indonesia using financing risk as a mediator. Data were collected from 14 samples operating in Indonesia in the period 2013-2019. They were then analyzed using Partial Least Squares – Structural Equation Modelling (PLS-SEM) with Warp PLS 7.0 as a tool of analysis. The results show that variable liquidity (FDR) significantly influences Bank Performance mediated by Financing Risk (NPF). Meanwhile, variable CAR shows no significant influence on Bank Performance even when it was mediated by the Financing Risk variable (NPF). This finding implies that providing short-term financing is more profitable for an Islamic bank than a longer one. This finding is in line with the Commercial Loan Theory, which states that it is better to provide loans in the short term to minimize the possibility of defaults that will impact the bank's performance.==================================================================================================ABSTRAK – Apakah Likuiditas dan Rasio Kecukupan Modal mempengaruhi Kinerja Bank Syariah di Indonesia? Suatu Analisis menggunakan Risiko Pembiayaan sebagai Mediator. Penelitian ini didorong oleh tidak konsistennya temuan penelitian sebelumnya dalam menilai determinan kinerja bank. Selain itu, risiko pembiayaan telah terindikasi sebagai variabel yang signifikan dalam memediasi pengaruh beberapa variabel penilaian kinerja bank syariah, tetapi tidak diakomodir dalam penelitian-penelitian sebelumnya. Oleh karena itu, penelitian ini bertujuan untuk menilai peran variabel likuiditas dan CAR terhadap kinerja bank syariah di Indonesia dengan menggunakan risiko pembiayaan sebagai mediator. Data penelitian dikumpulkan dari 14 bank syariah yang beroperasi di Indonesia. Analisis data dilakukan dengan menggunakan PLS-SEM dengan WarpPLS 7.0. Hasil penelitian menunjukkan bahwa likuiditas berpengaruh terhadap kinerja bank bank syariah dengan dimediasi oleh risiko pembiayaan (NPF). Sedangkan variabel CAR tidak menunjukkan pengaruh yang signifikan terhadap kinerja bank syariah walaupun dimediasi oleh NPF. Penelitian mempunyai implikasi bahwa memberikan pembiayaan jangka pendek lebih menguntung bagi bank syariah dari pada pembiayaan jangka panjang. Hal ini sejalan dengan Commercial Loan Theory yang menyebutkan bahwa memberikan pinjaman dalam jangka pendek lebih menguntungkan karena dapat meminimalisir terjadinya wanprestasi yang berdampak pada peningkatan kinerja bank.

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EFFECT OF CAPITAL ADEQUACY, LIQUIDITY, AND OPERATIONAL EFFICIENCY TO PROFITABILITY IN BANK SYARIAH MANDIRI (Period 2008 s.d. 2015)

Cited by 4 publications

References 0 publications

Islamic Banks’ Risks and Profitability A Case Study on Islamic Banks in Indonesia

Islamic Banks’ Risks and Profitability A Case Study on Islamic Banks in Indonesia

Implementation of Risk Management and Capital Structure on Financial Performance: A Study of Islamic Banking in Indonesia

Do Liquidity and Capital Adequacy Ratio Matter for Islamic Banks Performance in Indonesia? An Analysis Using Financing Risk as Mediator

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