The sharia bank stability: How fintech and financial ratio fixed it?

Az-Zahra, Ailsa Nabila and Miranti, Titis ORCID: https://orcid.org/0000-0002-8720-3809 (2023) The sharia bank stability: How fintech and financial ratio fixed it? I-Finance Journal, 9 (1). pp. 51-69. ISSN 2615-1081

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Abstract

This study aims to see whether the stability of Islamic banks is sufficiently dependent on financial technology and several financial ratios. The research was conducted at Islamic banks in Indonesia and Malaysia. To get the research sample used, a purposive sampling technique. The research sample consisted of 14 Islamic banks and was observed from 2017 to 2021. The analytical method uses panel data regression. The research results show. Capital Adequacy Ratio, Non-Performing financing (NPF), Equity-to-Assets Ratio (EAR) and firm size significantly affect bank stability, while financial technology, Assets Turnover, and Cost to Income Ratio (CIR) have no significant effect. Bank stability is one of the determinants of the goodness of state finances, so it needs to be a concern. Banks can increase capital values and firm size, then maintain NPF and EAR values to keep bank financial stability. Even though several other factors are not significant, banks still need to maintain the stability of their value so that the impact does not get worse.

Item Type:	Journal Article
Keywords:	stability; financial technology; financial ratios; sharia bank; NPF; CAR
Subjects:	14 ECONOMICS > 1401 Economic Theory > 140103 Mathematical Economics 14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics 14 ECONOMICS > 1403 Econometrics > 140304 Panel Data Analysis 14 ECONOMICS > 1403 Econometrics
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Titis Miranti
Date Deposited:	07 Nov 2023 09:23

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