The effect of bank performance and macroeconomics on the profitability of Indonesian Sharia Commercial Banks

Amin, Sakinah Maulidah Mastniah and Jaya, Tiara Juliana ORCID: https://orcid.org/0000-0002-7598-7263 (2024) The effect of bank performance and macroeconomics on the profitability of Indonesian Sharia Commercial Banks. Al-Muamalat: Jurnal Ekonomi Syariah, 11 (1). pp. 96-114. ISSN 2716-0610

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Abstract

This study examines the relationship between the profitability of Islamic commercial banks with the functions of Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), Operating Expenses and Operating Income (BOPO), inflation, Gross Domestic Product (GDP), and interest rates. This quantitative study's monthly report of Islamic banking and the monthly report of statistical data for 2015-2022 are secondary data sources. A method used is called multiple linear regression analysis. Based on the results of research, CAR and NPF are significantly related to the profitability of Islamic commercial banks. In contrast, the results of BOPO, GDP, inflation, and interest rates have no significant relationship with Islamic commercial banks. ROA simultaneously affects CAR, NPF, BOPO, inflation, GDP, and interest rates. Based on the conclusions of this study. If Islamic banks want to maximize their profitability, they must maintain capital efficiency and stabilize non-performing financing and operational ratios.

Item Type:	Journal Article
Keywords:	Bank Performance; Macroeconomics; Profitability of Islamic Commercial Banks
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Tiara Juliana Jaya
Date Deposited:	28 Aug 2024 15:10

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