Measuring the Financial Performance of Islamic Banks in Selected Countries

Terzi, Chokri; Anis, El Ammari

doi:10.4172/2167-0234.1000328

Cited by 1 publication

(2 citation statements)

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“…This situation will increase the ability of producers to meet their financing obligations at banks (Sudarsono, 2017a). These results support the research of Aslam and Ijaz (2016), Chokri andAnis (2018), andFithria (2018) which find that inflation does not statistically affect bank profitability.…”

Section: Discussionsupporting

confidence: 81%

“…Research by Djalilov and Piesse (2016), Lee et al (2015), Sudarsono (2017b), Zarrouk et al (2016) found a negative relationship between inflation (INF) and profitability. While Aslam and Ijaz (2016), Chokri and Anis (2018), Fithria (2018), and Tumewang et al (2019) find that inflation does not statistically affect bank's profitability. The hypothesis of the relationship between the growth rate and the inflation rate on the profitability of a BPRS can be arranged as follows:…”

Section: Literature Reviewmentioning

confidence: 83%

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Do stability and size affect the profitability of Islamic rural bank in Indonesia?

Sudarsono

Afriadi

Suciningtias

2021

JEKI

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Purpose -This study aims to analyze the effect of stability, size, financial performance and macroeconomic variables on the profitability of Islamic Rural Banks (BPRS) in Indonesia.Methodology -This study uses panel data consisting of 82 BPRS from December 2012 to December 2018. This study uses a dynamic model using GMM (General Method of Moments) developed by Arellano & Bover (1995) and Blundell & Bond (1998). GMM is used to describe the actual conditions in the analysis of profitability of Islamic Rural Banks.Findings -The findings of this study indicate that the stability and size of the BPRS have a negative effect on the level of ROA and ROE. Further, BAC has a positive effect on ROA but it has a negative effect on ROE. While the deposit structure (DS) is found to have a positive effect on ROA and ROE, FDR and the total deposit (DAR) is found to have a positive effect on both ROA and ROE. Meanwhile, the capital structure does not show a significant value on ROA. On the other hand, economic growth (GDP) and inflation (INF) do not show a significant relationship to ROA, but inflation is positively related to ROE.Originality -This study is to determine the effect of the stability and the size of BPRS on its profitability. This study uses 6 models to obtain a consistent variation of variables in influencing profitability.

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