Effect of company size, liquidity and operational efficiency on bank profitability with problem credit risk as a moderating variable at commercial banks that are listed on the Indonesia Stock Exchange

Adam, Mohamad; Safitri, Riska Nanda; Wahyudi, Tertiarto

doi:10.22437/ppd.v6i3.5894

Cited by 13 publications

(14 citation statements)

References 3 publications

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“…Meanwhile, the regression results of operational efficiency on the ROA and ROE are consistent with the findings of [57,68,69,70] that found a significant negative effects of the operational efficiency on profitability such as ROA and ROE of the firms. Thus, high operational efficiency by reducing cost in Islamic banks would lead to enhance the profitability of the banks.…”

Section: Discussionsupporting

confidence: 90%

“…Regarding banking industries, an operational efficiency ratio implied the bank capacity to optimise operating expense management and profitability. Notably, past research affirmed the operating efficiency-bank profitability correlation [14,69,70]. The studies demonstrated that organisations implementing minimal cost operations potentially improved the bank profitability represented by ROA ratio.…”

Section: Operational Efficiencymentioning

confidence: 79%

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Protection of Bank's Wealth: How is Islamic Banks's Financial Performance Affected by Asset Quality and Operational Efficiency

Ali¹,

Shuib²,

Nor³

2021

ujaf

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Islamic banks are recognised as entities which support social objectives as well as economic development of the country. Financial performance of the global Islamic banking and finance has shown promising growth as equal to well-established conventional banks. The study aims to investigate the effect of asset quality and operational efficiency on the financial performance of Islamic banks in Malaysia. The study uses panel data analysis, whereby the annual reports of 16 Islamic banks in Malaysia are analysed over a ten-year period from 2010 to 2019. The independent variables of the study are asset quality and operational efficiency. The dependent variable of the study is financial performance proxied by Return on Asset (ROA) and Return on Equity (ROE). Multiple regression models consisting of random-effect model and fixed-effect model are employed to analyse the data of the study. The findings of the study show that both asset quality and operational efficiency of Islamic banks have a significant influence on the financial performance proxied by ROA and ROE. Hence, the findings of the study evince the importance of proper management practices in protecting the wealth, as well as the financial performance of the Islamic banks.

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Section: Discussionsupporting

confidence: 90%

Section: Operational Efficiencymentioning

confidence: 79%

Protection of Bank's Wealth: How is Islamic Banks's Financial Performance Affected by Asset Quality and Operational Efficiency

Ali¹,

Shuib²,

Nor³

2021

ujaf

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“…The capital aspect, which is the first problem MSMEs face, can be a solution (Adam, Safitri & Wahyudi, 2018). For Islamic Microfinance Institutions that apply sharia principles and financial institutions, especially micro Waqf banks, this policy encourages fund providers to open their fund distribution taps more widely (Wowoho, 2014).…”

Section: Policy Impacts On Micro Waqf Banks In Indonesiamentioning

confidence: 99%

Policy analysis of micro Waqf banks in Indonesia

Aransyah

Noor

Abdullah

2022

JES

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This article aims to understand the Indonesian Government's efforts in making policies to handle the development of micro Waqf banks in Indonesia. The handling strategy can be assessed by understanding the policies formulated and implemented by the Indonesian Government. This study used a deliberative policy analysis approach, and data were collected through a literature study. The results of this study conclude 1) management for groups that can avoid misuse of loan funds and disbursement of funds not on target; 2) training and mentoring can build management commitment and customer enthusiasm to build a more advanced business; 3) with the financing method without collateral, the Islamic financial system does not collect deposits, low yields, and fast and easy administrative processes such as Islamic banking. Combining these three factors optimizes the performance of the micro Waqf bank in economic empowerment and community productivity. It helps increase the income and welfare of the community around the pesantren (Islamic boarding school).

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“…The most important factor to keep banks healthy is to maintain the trust of prospective bank users Ajeng Tita Nawangsari them selves. This is because the main capital of banks is public trust (Adam, et al 2018). There are several alternatives to measure Islamic banks' performance besides using profitability indicators and using various financial indicators with Islamic perspective aspects (Nugroho, et al 2021).…”

Section: Introductionmentioning

confidence: 99%

Performance Index and Operating Ratio: Effects Islamic on Sharia Profitability in Indonesia

Nawangsari

Junjunan

Fakhiroh

et al. 2022

JRAK

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This study aimed to to ascertain the impact of Islamic Performance Index and Operating Efficiency Ratio on the financial performance of Islamic banking for 2016-2020 period. Purposive sampling was used as the empirical methodology. Data analysis was done by using Eviews 12 software and moderated regression analysis (MRA). The findings indicated that while the Islamic income ratio did not have impact on profitability, the profit sharing ratio and operating efficiency ratio had a significant detrimental impact on it. The findings also showed that intellectual capital can influence profitability by reducing the impact of operating efficiency ratio and profit sharing ratio, but it cannot affect profitability by reducing the impact of Islamic income ratio.

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Effect of company size, liquidity and operational efficiency on bank profitability with problem credit risk as a moderating variable at commercial banks that are listed on the Indonesia Stock Exchange

Cited by 13 publications

References 3 publications

Protection of Bank's Wealth: How is Islamic Banks's Financial Performance Affected by Asset Quality and Operational Efficiency

Protection of Bank's Wealth: How is Islamic Banks's Financial Performance Affected by Asset Quality and Operational Efficiency

Policy analysis of micro Waqf banks in Indonesia

Performance Index and Operating Ratio: Effects Islamic on Sharia Profitability in Indonesia

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