ANALYSIS OF INTERNAL AND EXTERNAL DETERMINANT VARIABLES TOWARDS PROFITABILITY OF ISLAMIC BANKING IN INDONESIA (2014-2020)

  • Febri Ramadhani Universitas Airlangga
  • Muhammad Rizkan National Dong Hwa University, Hualien City, Taiwan
Keywords: Profitability, NPF, CAR, Inflation.

Abstract

Indonesia is a country that adheres to a dual banking system, namely conventional and Islamic Banking. The growth rate of Islamic banking in the last three years is higher than conventional banking. However, in total assets, Islamic banking is still far behind conventional banking. Therefore, it is necessary to study further the performance of Islamic banking reflected in its profitability. So, it becomes an alternative input in determining Islamic banking policies. This study aims to know the factors affecting the profitability (ROA) of Islamic Banking in Indonesia. The data used are the 2014-2020 monthly data in the amount of 79 data. The method used in this study is a Vector Error Correction Model (VECM) to determine the effect of long-run and short-run relationships. The results of the study showed that the long-run relationship of the NPF variable affected and was significant positive toward ROA, CAR affected and was significant negative toward ROA, while the inflation variable had a negative relationship and not significant toward ROA. The results of the short-run relationships showed that the NPF and CAR variables positively affected ROA, while the inflation variable did not significantly affect the ROA.

Keywords: Profitability, NPF, CAR, Inflation.

Downloads

Download data is not yet available.

References

Basuki, A. T. (2015). Electronic Data Processing (SPSS 15 dan Eviews 7). Yogyakarta: Danisa Media.

Dendawijaya, L. (2009). Manajemen Perbankan. Jakarta: Ghalia Indonesia.

Firdaus, M. (2011). Aplikasi Ekonometrika Untuk Data Panel dan Time Series. Bogor: IPB Press.

Haryanti, Y. (2018). Pengaruh Rasio Kesehatan Bank Terhadap Kinerja Keuangan Bank Umum Syariah Di Indonesia Periode 2012-2016. Skripsi Fakultas Ekonomi dan Bisnis Islam Universitas Islam Negeri Raden Intan Lampung.

Bank Indonesia. (2020). Data Inflasi. Retrieved November 10, 2020, from https://www.bi.go.id/id/fungsi-utama/moneter/inflasi/Default.aspx

Mankiw, N. (2006). Pengantar Ekonomi Makro Edisi Ketiga. Jakarta: Salemba Empat.

Muhammad. (2005). Manajemen Bank Syariah. Yogyakarta: UPP AMPYKPN.

Nuriyah. (2018). Micro, Small-Financial Financing And Its Implication On The Profitability Of Sharia Banks. Jurnal Manajemen, 3(2).
OJK. (2019). Statistik Perbankan Syariah. Retrieved November 10, 2020, from OJK: https://www.ojk.go.id/id/kanal/Syariah/data-dan-statistik/statistikperbankanSyariah

OJK. (2020). (SNLKI) Strategi Nasional Literasi Keuangan Indonesia. Retrieved November 10, 2020i , from OJK: https://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Documents/Pages/ Strategi-Nasional-Literasi-Keuangan-Indonesia-

Rahmawati. (2016). Pengaruh Faktor Ekonomi Terhadap Kinerja Keuangan Perbankan Syariah di Indonesia. Skripsi Fakultas Syariah dan Hukum UIN Syarif Hidayatullah.

Riyanto, B. (2001). Dasar-dasar Pembelanjaan Perusahaan. Yogyakarta: BPFE.

Rohendi, A. (2010). Sistem Perbankan Indonesia Pasca Undang-Undang Perbankan Syariah (Indonesian Banking System Post Islamic Banking Law). Jurnal Wawasan Tridharma, 9.

Sudarsono, H. (2004). Bank dan Lembaga Keuangan Syariah Deskripsi dan Ilustrasi. Yogyakarta: Ekonisia.

Sumarlin. (2016). Analisis Pengaruh INFLASI, CAR, FDR, BOPO, dan NPF Terhadap Profitabilitas Perbankan Syariah. Jurnal Universitas Islam Negeri Alauddin Makassar, 6(2).

Suprapto, Ummah. (2015). Faktor-Faktor Yang Mempengaruhi Profitablitas Pada Bank Mu’amalat Indonesia . Jurnal Ekonomi dan Perbankan Syariah, 3(2), 1-24.
Published
2021-08-31
How to Cite
Ramadhani, F., & Rizkan, M. (2021). ANALYSIS OF INTERNAL AND EXTERNAL DETERMINANT VARIABLES TOWARDS PROFITABILITY OF ISLAMIC BANKING IN INDONESIA (2014-2020). Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 4(1), 18-34. https://doi.org/10.31538/iijse.v4i1.1442