The Influence of Sharia Banking Characteristics and Macroeconomics Factors on Sharia Banking Profitability: Empirical Studies in Indonesia

Rofiqo, Azidni; Afrianti, Noni

doi:10.30659/ijibe.4.1.540-550

Cited by 3 publications

(12 citation statements)

References 4 publications

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“…Research by Rofiqo & Afrianti (2019) shows that some NPF financing problems harm profitability; this is in line with the study of Indyarwati & Handayani (2017) and Afrizal (2017, p. 207). Negative impact on company performance.…”

Section: Literature Reviewsupporting

confidence: 80%

“…It is in line with Mahmudah & Harjanti (2016) and Yusuf (2017), which show that CAR has a significant positive effect on profitability. As for research conducted by Indyarwati & Handayani (2017) and Syakhrun et al (2019), Quan et al (2019), Almazari (2014), Duraj & Moci (2015), Mohamad, Sulaiman, Hamimah, & Muslim (2019), Anwar Salem Musibah & Wan Sulaiman Bin Wan Yusoff Alfattani (2017), Al Zaidanin (2020), and Hazzi & Kilani (2013) shows that CAR is beneficial for profitability (ROA) has a negative effect Research conducted by Rofiqo & Afrianti (2019) shows that CAR does not have a significant effect on profitability (ROA). With the following assumptions: H1: Capital Adequacy Ratio (CAR) has a positive impact on the performance of Islamic commercial banks.…”

Section: The Effect Of Car On the Performance (Roa) Of Islamic Commercial Banksmentioning

confidence: 96%

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Determining the Performance of Sharia Commercial Banks With Moderation of Non Performing Financing Ratio in Indonesia

Hidayat¹,

Wardini²,

Wati³

2021

riset

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The research objectives to be achieved are: (1) To analyze and reveal empirically whether the Capital Adequacy Ratio (CAR), OE, Financing to Deposit Ratio (FDR), Net Operating Margin (NOM) affects the performance of Islamic Commercial Banks as measured by the ratio ROA). (2) To determine and analyze whether the non-performing loan ratio (NPF) moderates the effect of Capital Adequacy Ratio (CAR), OE, Financing to Deposit Ratio (FDR), and Net Operating Margin (NOM) on the performance of Islamic Commercial Banks (Return On Assets). This type of research is a quantitative research. The population used in this study is a Islamic commercial banks registered with the Financial Services Authority consisting of 14 BUS from 2015-2019. The data used is secondary data and uses saturated sampling method. Researchers used this sampling technique because the total population of 14 Islamic commercial banks companies in Indonesia are registered with the Financial Services Authority (OJK). Analysis of research data using Moderating Regression Analysis. Simultaneously CAR, OE, FDR and NOM have a positive effect on BUS performance for the 2015-2019 period as measured by ROA, but the partial results are only CAR that has a positive effect on ROA while OE, FDR and NOM have a negative effect on ROA, this happens because The capital adequacy held in the current period in lending is currently decreasing when compared to the previous period so that it has an impact on decreasing income and profit for the next period. Simultaneously, NPF moderates CAR, OE, FDR and NOM have a positive effect on BUS performance for the 2015-2019 period as measured by ROA, while the partial results are only NPF which has an impact on reducing the effect of CAR on ROA, while other variables when NPF moderate the relationship with ROA moves towards improvement. This is because the capital adequacy ratio is currently used in handling the current bad credit ratio as a result of loans extended in the previous period so that the current capital that should be used to generate profits in the next period through an increase in the volume of credit at this time from the previous period is reduced so that an impact on the decline in Islamic commercial banks profitability in the next period. As for what makes the difference in this study is the moderation of NPF on the effect of CAR, BOPO, FDR and NOM on ROA.

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Section: Literature Reviewsupporting

confidence: 80%

Section: The Effect Of Car On the Performance (Roa) Of Islamic Commercial Banksmentioning

confidence: 96%

Determining the Performance of Sharia Commercial Banks With Moderation of Non Performing Financing Ratio in Indonesia

Hidayat¹,

Wardini²,

Wati³

2021

riset

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“…This can happen because the increase in nonperforming financing can potentially reduce the income that comes from financing products. Several studies found a negative effect of NPF on ROA (Yusuf and Mahriana, 2016;Harianto, 2017;Azmy, 2018;Sutrisno and Widarjono, 2018;Rofiqo and Afrianti, 2019;Istiqomaha et al, 2021). On the other hand, studies by Said and Ali (2016), Virgana et al (2019), and Wahyudi (2020) found that NPF does not affect ROA.…”

Section: H2: Non-performing Financing (Npf) Hurts Bprs Profitabilitymentioning

confidence: 99%

“…Research by Almunawwaroh and Marliana (2018), Sari and Endri (2019), as well as Alnajjar and Abdullah Othman (2021), found that CAR hurts ROA, contrastingly the research by Alshatti (2016), Virgana et al (2019), Wahyudi et al (2019) and Bouhider (2021) found a positive effect of CAR on the ROA of Islamic banks in Indonesia. Some researchers found that CAR does not affect the ROA value of BPRS (Said and Ali, 2016;Harianto, 2017;Sutrisno and Widarjono, 2018;Azmy, 2018;Rofiqo and Afrianti, 2019;Wahyudi, 2020;Rachmadani et al, 2021).…”

Section: H1: Capital Adequacy Ratio (Car) Hurts Bprs Profitabilitymentioning

confidence: 99%

Determinants of the Profitability of Islamic Rural Banks During Covid-19 in Indonesia

Lubis,

Anjani,

Nursyamsiah

2023

JIEFeS

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The Return on Asset (ROA) value of Islamic rural banks (BPRS) keeps decreasing during the Covid-19 pandemic, specifically from 2020 to 2021. The ROA value of Sharia Commercial Bank and Sharia Business Unit also decreased in 2020 but increased in 2021. During the pandemic, many financial institutions were in trouble, but BPRS was still able to survive in the midst of a crisis. This phenomenon attracted some scholars to study the factors that made BPRS survive during a pandemic. This study aims to analyze the effect of internal and external factors on Islamic rural banks’ profitability from the second quarter of 2020 to the first quarter of 2022. The sample used consisted of 134 Islamic rural banks with complete data to be analyzed. This study used panel data regression with ROA as the dependent variable. The result of regression shows that partially, FDR has a positive impact on ROA, whereas NPF and OER hurt ROA. On the other hand, CAR, GDP, and CPI have no impact on ROA. The finding shows that the internal factors of the BPRS have an important role in dealing with crises during a pandemic. The government is expected to support the digital transformation of BPRS in order to increase the efficiency and convenience of BPRS, so the public is attracted to join BPRS.

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“…Apabila rasio ROA meningkat maka rasio FSR juga akan mengalami kenaikan. Hal tersebut didukung pada penelitian yang dilakukan Sari & Haryanto (2017) dan Rofiqo & Afrianti (2018) bahwa NPF berpengaruh terhadap ROA dan Nurhikmah (2021) bahwa ROA berpengaruh terhadap FSR.…”

Section: Return On Asset (Roa)unclassified

The Influence of Inflation, Exchange Rate, Non Performing Financing (NPF) and Financing to Deposit Ratio (FDR) to Financial Sustainability Ratio with Return on Aset (ROA) as Mediation

Himawan¹,

Pertiwi²

2022

AFS

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ABSTRACT The background of this research is that banks as one of the supporters of the Indonesian economy are required to experience financial sustainability. The FSR ratio is used to determine the growth of a bank and to determine whether the bank is capable or not in continuing its financial performance. The purpose of this study was to determine the effect of inflation, exchange rates, NPF and FDR on FSR at Islamic Commercial Banks in Indonesia in 2016-2020 with ROA as a mediating variable. This research is classified as a quantitative research with a population of 14 BUS registered at OJK. The research sample was determined by purposive sampling method with specified criteria so that there were 13 samples used. Then 65 data were obtained from the 13 samples in the 2016-2020 observation period. The type of data used is secondary data. The analytical method used is multiple linear regression analysis with PLS test using Eviews 10 software. The results show that partially the inflation, exchange rate and FDR variables have no effect on the FSR of Islamic banks. The NPF variable has a negative and significant effect on FSR. And the ROA variable has a positive and significant effect on FSR. The results also show that the variables of inflation, exchange rate, and FDR have no effect on ROA. While the NPF variable has a negative and significant effect on ROA. According to the research results, ROA is only able to mediate the effect of NPF on FSR. ABSTRACTThe background of this research is that banks as one of the supporters of the Indonesian economy are required to experience financial sustainability. The FSR ratio is used to determine the growth of a bank and to determine whether the bank is capable or not in continuing its financial performance. The purpose of this study was to determine the effect of inflation, exchange rates, NPF and FDR on FSR at Islamic Commercial Banks in Indonesia in 2016-2020 with ROA as a mediating variable. This research is classified as a quantitative research with a population of 14 BUS registered at OJK. The research sample was determined by purposive sampling method with specified criteria so that there were 13 samples used. Then 65 data were obtained from the 13 samples in the 2016-2020 observation period. The type of data used is secondary data. The analytical method used is multiple linear regression analysis with PLS test using Eviews 10 software. The results show that partially the inflation, exchange rate and FDR variables have no effect on the FSR of Islamic banks. The NPF variable has a negative and significant effect on FSR. And the ROA variable has a positive and significant effect on FSR. The results also show that the variables of inflation, exchange rate, and FDR have no effect on ROA. While the NPF variable has a negative and significant effect on ROA. According to the research results, ROA is only able to mediate the effect of NPF on FSR.

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The Influence of Sharia Banking Characteristics and Macroeconomics Factors on Sharia Banking Profitability: Empirical Studies in Indonesia

Cited by 3 publications

References 4 publications

Determining the Performance of Sharia Commercial Banks With Moderation of Non Performing Financing Ratio in Indonesia

Determining the Performance of Sharia Commercial Banks With Moderation of Non Performing Financing Ratio in Indonesia

Determinants of the Profitability of Islamic Rural Banks During Covid-19 in Indonesia

The Influence of Inflation, Exchange Rate, Non Performing Financing (NPF) and Financing to Deposit Ratio (FDR) to Financial Sustainability Ratio with Return on Aset (ROA) as Mediation

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