The Determinant of Islamic Bank Profitability and Stability in Indonesia Periods 2010-2017

Supiyadi, Dedi

doi:10.2991/aebmr.k.210831.004

Cited by 4 publications

(8 citation statements)

References 19 publications

(44 reference statements)

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“…The analysis from the partial regression testing indicates that the Bank Indonesia Islamic Deposit Facility (FASBIS) does not have a significant effect on Islamic banking liquidity. This finding contrasts with the study by (Supiyadi, 2021), which delves into the determinants of Islamic bank profitability and stability in Indonesia. While 's study focuses on profitability and stability rather than liquidity, it provides insights into the factors influencing Islamic banking performance, which can indirectly impact liquidity management strategies.…”

Section: Fasbis Impact On Fdrcontrasting

confidence: 92%

Is There a Relationship Between Islamic Banking Liquidity and Inflation? Empirical Evidence from Indonesia

Jazmiyanti,

Cahyono,

Kassim

2024

EII

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This study aims to determine if there is a relationship between the Islamic bank liquidity and inflation in the context of Indonesia. In achieving this objective, the effects of Bank Indonesia Certificates Sharia (SBIS), Bank Indonesia Islamic Deposit Facility (FASBIS), Inflation on Sharia Banking Liquidity for the period of 2011-2019 are analysed. The research method is quantitative approach and analyzed using multiple linear regression analysis. The data used in this study are secondary data obtained from official data from Bank Indonesia and the Financial Services Authority (OJK).The results showed that the Bank Indonesia Certificates Sharia (SBIS) had a significant negative effect on Islamic banking liquidity; the Bank Indonesia Islamic Deposit Facility (FASBIS) had no influence on Islamic banking liquidity; and inflation had a significant positive effect on Islamic banking liquidity. For monetary authority, this research can be used as an evaluation material for programs that are carried out specifically in the FASBIS instrument so that in the future FASBIS has an influence on Islamic banking liquidity and also while maintaining monetary instrument stability.

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Section: Fasbis Impact On Fdrcontrasting

confidence: 92%

Is There a Relationship Between Islamic Banking Liquidity and Inflation? Empirical Evidence from Indonesia

Jazmiyanti,

Cahyono,

Kassim

2024

EII

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“…An increased debt of a firm rises the probability of a firm being more instable. Another control variable that we used in our study is credit risk proxied by loan-to-asset ratio calculated by net loan to total assets recommended by Ali and Puah (2019), Rupeika-Apoga, Zaidi, Thalassinos and Thalassinos (2018) and Supiyadi (2021). The higher the loan of a firm, the greater the amount of risk.…”

Section: Methodsmentioning

confidence: 99%

“…, 2021; Rupeika-Apoga et al. , 2018; Supiyadi, 2021) calculate the Z-score as calculating the ROA with the addition the capital ratio by the standard deviation of the ROA.where,…”

Section: Methodsmentioning

confidence: 99%

“…The greater the value, the more stable the banking system is. In our study, we measure operating efficiency as proxied by the non-interest expense ratio suggested by Ali, Shuib and Nor (2021), Dutta and Saha (2021), Rahman et al (2021) and Supiyadi (2021) which is calculated as a non-interest expense to the total asset. So, we may claim that increased operational efficiency improves the financial sector's stability.…”

Section: Methodsmentioning

confidence: 99%

“…In this study, we employ Z-score as a dependent variable. Most authors (Ali & Puah, 2019;Audi et al, 2021;Mkadmi et al, 2021;Rahman et al, 2021;Rupeika-Apoga et al, 2018;Supiyadi, 2021) calculate the Z-score as calculating the ROA with the addition the capital ratio by the standard deviation of the ROA.…”

Section: Methodsmentioning

confidence: 99%

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Bank stability, performance and efficiency: an experience from West Asian countries

Shahriar

Mehzabin

Ahmed

et al. 2022

IRJMS

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PurposeThe banking sector in West Asia has always experienced positive growth except for Palestine. Apart from some negligible outlying outcomes in some countries that have faced political crises and war, most West Asian countries have gained bank profitability and efficiency. However, the stability in the banking sector has been rarely examined in the literature. Hence, this study sheds light on examining bank stability by considering 12 countries in West Asia.Design/methodology/approachA fixed effect panel data regression analysis is employed on strongly balanced panel data using data from 2004 to 2018.FindingsResults reveal that the net interest margin has a positive relationship with bank stability. The bank’s stability rises as the net interest margin improves. Furthermore, the non-interest income reveals a positive significant impact on the stability of banks, depicting that the increase in non-interest income increases the stability of banks. Additionally, the non-interest expense also reveals positive significant results with the stability of banks. Nevertheless, leverage ratio and long-term debt portray a negative significant impact on banks’ stability. The finding reveals that higher long-term debt and leverage ratios may decrease the stability of the banks in West Asia.Practical implicationsOverall, the authors’ findings add to the literature on the stability of the banks by providing some new but significant information. Some of the recommendations may be beneficial to the long-term success of 12 Western Asian countries’ banks.Originality/valueThe study examines the stability of banks by incorporating both profitability and operating efficiency along with net-interest income, which extends to the current literature’s insight.

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Pengaruh Risiko Kredit terhadap Profitabilitas pada Bank Perkreditan Rakyat di Kepulauan Riau

Alexander,

Cuandra

2023

jipb

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The purpose of this research was to determine the effect of credit risk, liquidity risk, leverage, bank size, operating efficiency, inflation, gross domestic sales on profitability. This research uses quantitative method techniques and uses a purpose sampling method in analyzing research objects which also uses cross section and time series studies. The object of this research is the Rural Banks in the Riau Islands. A sample of 35 Rural Banks registered with the Financial Services Authority in the period 2017 to 2022. Data analysis used the SPSS Statistics 25 application and EViews 12 to obtain descriptive statistical data, panel regression analysis, F test, t test, and coefficient of determination. The results show that there is a significant influence on several variables. Where the variables credit risk, leverage, bank size, operating efficiency and inflation have a significant negative effect on profitability and the gross domestic gross variable also has a positive relationship with profitability. Meanwhile, liquidity risk has no influence on the profitability of Rural Banks in the Riau Islands.

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The Determinant of Islamic Bank Profitability and Stability in Indonesia Periods 2010-2017

Cited by 4 publications

References 19 publications

Is There a Relationship Between Islamic Banking Liquidity and Inflation? Empirical Evidence from Indonesia

Is There a Relationship Between Islamic Banking Liquidity and Inflation? Empirical Evidence from Indonesia

Bank stability, performance and efficiency: an experience from West Asian countries

Pengaruh Risiko Kredit terhadap Profitabilitas pada Bank Perkreditan Rakyat di Kepulauan Riau

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