The role of financial performance on the profitability of Indonesian Islamic banks

Lidia Sjarief, Muhammad Abdul Ghoni, Muchammad Taufiq Affandi
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Abstract

Purpose – This study aims to analyse the effect of non performing financing (NPF), capital adequacy ratio (CAR), financing to deposit ratio (FDR), and Bank Indonesia shariah promissory notes (SBIS) on Islamic banks’ profitability (ROA) in Indonesia.Methodology – The data set consists of 10 Islamic banks operating in Indonesia between 2017—2021. The secondary data was collected from the Financial Services Authority (Otoritas Jasa Keuangan, OJK). A method of panel data is used for this study by using Stata 17 to process the data.Findings – The estimation results showed that NPF partially has a significant negative relationship on ROA, both CAR and SBIS have a significant effect on ROA, while FDR does not affect ROA. Simultaneously, NPF, CAR, and FDR do not affect ROA. But NPF, CAR, FDR, and SBIS simultaneously have a positive and significant effect on the Islamic Bank's profitability (ROA) by the year 2017 – 2021.Implications – Islamic banks need to be more selective in providing financing to customers so that financing risks can be minimized. In addition, CAR and SBIS need to be increased or maintained so that the profitability level of Islamic banks can be maximized.Originality – This research tries to re-examine the effect of financial performance on the profitability of Islamic banks in 2017-2021.
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财务绩效对印尼伊斯兰银行盈利能力的作用
目的-本研究旨在分析不良融资(NPF),资本充足率(CAR),融资存款比率(FDR)和印度尼西亚银行伊斯兰教法本票(SBIS)对印度尼西亚伊斯兰银行盈利能力(ROA)的影响。方法-该数据集包括2017-2021年间在印度尼西亚运营的10家伊斯兰银行。辅助数据是从金融服务管理局(Otoritas Jasa Keuangan, OJK)收集的。本研究采用面板数据的方法,使用Stata 17对数据进行处理。研究结果-估算结果显示,NPF对ROA有部分显著负相关,CAR和SBIS对ROA均有显著影响,而FDR对ROA没有影响。同时,NPF、CAR和FDR不影响ROA。但NPF、CAR、FDR和SBIS同时对伊斯兰银行2017 - 2021年的盈利能力(ROA)产生积极而显著的影响。影响-伊斯兰银行在向客户提供融资时需要更有选择性,以便将融资风险降至最低。此外,需要增加或维持CAR和SBIS,以使伊斯兰银行的盈利水平最大化。原创性-本研究试图重新审视2017-2021年财务绩效对伊斯兰银行盈利能力的影响。
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发文量
21
审稿时长
10 weeks
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