The Role of Economic Growth and Economic Freedom in Moderating the Influence of Bank Health Performance on Profitability

Sabrina, Siti Nabila Zida ORCID: https://orcid.org/0000-0002-8720-3809 and Miranti, Titis ORCID: https://orcid.org/0000-0002-8720-3809 (2025) The Role of Economic Growth and Economic Freedom in Moderating the Influence of Bank Health Performance on Profitability. Islamic Economics Journal, 11 (2). pp. 129-160. ISSN 2460-1896

Text Sinta 3_Zida dan Titis.pdf Download (874kB)

Abstract

This study aims to analyze the effect of bank soundness on the profitability of Islamic Banks in Indonesia, with economic growth and economic freedom as moderating variables. Bank soundness is measured using the RGEC approach. This study adopts a quantitative approach, employing panel data regression analysis and Moderated Regression Analysis (MRA). The data used consist of annual secondary data from 2011 to 2024, including financial
ratios from the annual reports of Islamic commercial banks in Indonesia, as well as data on Indonesia’s economic growth and economic freedom. The results show that bank soundness has a significant effect on profitability, except for GCG. Economic growth and economic freedom moderate the relationship between all independent variables and the dependent variable, except for GCG. These findings emphasize the importance of strengthening
internal bank factors and macroeconomic support to enhance the profitability of Islamic banking in Indonesia

Item Type:	Journal Article
Keywords:	Risk Profile, Corporate Governance, Profitability, Capital, Economic Growth, Economic Freedom
Subjects:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150201 Finance 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150203 Financial Institutions (incl. Banking) 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Titis Miranti
Date Deposited:	28 Jan 2026 14:43

Downloads

Origin of downloads

Actions (login required)

View Item