The influence of financial performance and macroeconomic on financing risk in Islamic banks

Angraini, Dita Putri; Sudarsono, Heri; Anindita, Sella Fitri

doi:10.20885/ajim.vol2.iss2.art6

Cited by 4 publications

(4 citation statements)

References 22 publications

(34 reference statements)

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“…In this case, the control carried out by the Indonesian central bank (2021), indicating that the BIR had a negative sign and relevantly impacted NPFs. Meanwhile, Angraini and Anindita (2020); Hasanah and Septiarini (2020); Sudarsono (2018) found that the BIR was ineffective on the NPFs.…”

Section: Resultsmentioning

confidence: 99%

“…An increase in GDP per capita also affect financing risk, with increased income leading to smaller monetary uncertainty due to the ability of people to pay loans and vice versa (Angraini & Anindita, 2020;Muqorrobin et al, 2021). Meanwhile, rising or falling inflation and benchmark loan rates (BIR) influence risks in the real sector business, leading to an effect on financing.…”

Section: Introductionmentioning

confidence: 99%

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What are the Determinants Affecting the Financing Risk in Indonesian Sharia Rural Banks?

Suhel

Bashir²,

Asngari³

et al. 2022

muqtasid

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Rapid and dynamic changes in the financial and economic systems are posing various risks and instabilities to Islamic banking institutions. Therefore, this study aims to investigate the impact of macroeconomic factors and bank abilities on financing risk in Indonesia. In this analysis, the 2005-2019 sharia banking statistics at 92 rural banks were emphasized in the country. A panel data regression was also employed with the fixed effect method during the experimental procedure. The results showed a negative and significant relationship between economic growth, FDR (financing to deposit ratio), and CAR (capital adequacy ratio) toward financing risk. Moreover, a positive and significant relationship was found between the benchmark loan rate on financing risk, although inflation had no significant effect. Economic growth was also a key factor influencing financing risk in the sharia rural banks sector. Based on these results, banking regulators were found to operate according to sharia principles, to selectively optimize and carefully monitor financial distribution and activities with high financing risk.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

What are the Determinants Affecting the Financing Risk in Indonesian Sharia Rural Banks?

Suhel

Bashir²,

Asngari³

et al. 2022

muqtasid

View full text Add to dashboard Cite

show abstract

“…Conversely, the smaller the BOPO ratio means the more efficient the bank's operational performance in carrying out its daily operations so that the probability of a bank in difficult conditions will be smaller. Research conducted by Angraini et al (2020), Auliani and Syaichu (2016), Fatoni and Utami (2019), Rahman and Fatmawati (2020), Santosa et al (2014), and Wibowo and Saputra (2017) states that BOPO has a positive effect on non-performing financing in banks.…”

Section: Relationship Between Financing To Deposit Ratio (Fdr) and Non-performing Financing (Npf)mentioning

confidence: 99%

“…Therefore, the higher the inflation rate in a country will cause non-performing financing to increase. According to research conducted by Angraini et al (2020), and Hosen and Muhari (2019), inflation affects the level of non-performing financing.…”

Section: Relationship Between Financing To Deposit Ratio (Fdr) and Non-performing Financing (Npf)mentioning

confidence: 99%

A spatial analysis of non-performance financing determinants in Islamic banks in Indonesia

Suprayitno

Hardiani

2021

JEKI

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Purpose -This study aims to analyze the non-performance financing determinant of Islamic Banking (IB) in Indonesia through spatial analysis. These determinants consist of macroeconomic and microeconomic variables Methodology -Samples in this research were selected using the purposive sampling technique with the criteria of Islamic banks registered in the Financial Services Authority (OJK) that released quarterly data reports and financial reports during 2015-2020. There are 7 Islamic banks that met the criteria.Findings -Results showed that the ROA, Inflation, GDP, and BI Rate simultaneously affected the NPF level, while FDR and CAR do not affect the NPF level of Islamic commercial banks. Meanwhile, partially FDR, BOPO, CAR, ROA, Inflation, GDP, and BI Rate affect the NPF level. In addition, the spatial analysis showed that based on the global distribution, there is a significant spatial effect through the geographical location between one bank and other.Originality -This research provides empirical data related to the determinants of non-performing financing, using the spatial analysis approach. Moreover, this research also uses the most updated data, Islamic and conventional banks during 2015-2020Research limitations -Related to the samples of Islamic banks, this research only investigates those registered in OJK, not all Islamic banks in Indonesia.

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Determining the main factors of Islamic banks’ profitability in Indonesia: Does Covid-19 crisis play an important role?

Munawar

Sulaeman

2023

Asian. J. Islam. Manag.

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Purpose – This research aims to investigate the main factors of Islamic banks’ profitability before and after the pandemic COVID-19 in Indonesia. Methodology – The sample of this study is ten Islamic commercial banks that have complete data and are registered with Bank Indonesia. The data was analyzed by using a data panel regression estimation model based on the best estimation model which is the random effect model or REM. Findings – Based on the result of the REM model, the study finds that both Islamic banks' internal variables such as NPF and OEF except CAR and FDR, and Islamic bank’s external variables such as the Covid-19 crisis variables are significant in determining Islamic banking profitability In Indonesia. Implications – The present research has implications for Islamic bank management and policy-makers as well as researchers.Originality – This study will become one of the pioneers to examine empirically determining the main factors of Islamic banks' profitability before and post-Covid-19 in Indonesia. The findings will contribute to minimizing the negative impact of economic crises like the Covid-19 outbreak in Indonesia.

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The influence of financial performance and macroeconomic on financing risk in Islamic banks

Cited by 4 publications

References 22 publications

What are the Determinants Affecting the Financing Risk in Indonesian Sharia Rural Banks?

What are the Determinants Affecting the Financing Risk in Indonesian Sharia Rural Banks?

A spatial analysis of non-performance financing determinants in Islamic banks in Indonesia

Determining the main factors of Islamic banks’ profitability in Indonesia: Does Covid-19 crisis play an important role?

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