Islamic Commercial Bank Performance: The Nexuses by Financial Ratios, Macro Economics, And Financial Technology
Journal Title: Maliki Islamic Economics Journal - Year 2023, Vol 3, Issue 1
Abstract
The objective of this study is to examine the relationship between various factors and the performance of Islamic commercial banks in Indonesia over the next 12 periods. The variables considered include Non-Performing Assets, Capital Adequacy Ratio, Insolvency-risk, Inflation, Financial Technology, and Bank Size. The research methodology employed is a quantitative approach with a descriptive analysis. The sampling technique utilized is saturated sampling, resulting in a total of 96 data points. The findings indicate that the Non-Performing Assets (NPA) variable has a significant impact on Return on Assets (ROA), while the ROA variable does not significantly affect the NPA variable. Additionally, the inflation variable does not have a statistically significant effect on ROA, and vice versa. In the short term, the variables that influence bank performance are NPA, Capital Adequacy Ratio, Insolvency-risk, Financial Technology, and Bank Size. In the long term, significant factors influencing bank performance are NPA, Insolvency-risk, Financial Technology, and Bank Size. The Impulse Response Function (IRF) test demonstrates that ROA shows a positive response to the impact of NPA, Capital Adequacy Ratio, Inflation, Financial Technology, and Bank Size, while it exhibits a negative response to shocks caused by inflation. Throughout the study period, the variable with the greatest contribution remains Financial Technology, followed by other variables. Ultimately, the aim of this study is to provide insights for future policy implementation and decision-making within companies
Authors and Affiliations
Rahma Nurlaili, Titis Miranti
Keywords
Related Articles
- EP ID EP735592
- DOI https://doi.org/10.18860/miec.v3i1.21719
- Views 33
- Downloads 1
Marketing Strategy of Griya iB Hasanah Financing Products: Evidence from the Bank Syariah Indonesia in Mataram
The purpose of this research is to find out the marketing strategy carried out and to find out the obstacles that occur in implementing the marketing strategy of the Griya iB Hasanah product at Bank Syariah Indonesia KC....
Perspective of Law No. 40 of 2014 Concerning Sharia Life Insurance Business in Risk Management
Sharia life insurance is a coverage or agreement between two parties in which one party is obliged to pay contributions or premiums. In sharia insurance, it is usually a contract in the form of a tijarah agreement and or...
Optimization of Waqf Management in Increasing Public Trust in Nazhir
Indonesia has the potential for waqf to be able to grow and develop better. However, this potential is not accompanied by good management. This study aims to increase public trust in nazhir by optimizing waqf management....
Background of The Board of Director and Financial Intermediary: Does It Contribute to The Performance of Islamic Banks?
This study aims to examine the effect of women leadership, education level, financing and investment on the profitability of Islamic banks. The type of data used is secondary data in the form of annual reports of Islamic...
Research Mapping of Musyarakah Contracts in Islamic Financial Institutions: VOSviewer Bibliometric Study and Literature Review
This study aims to determine the map of research developments regarding Musyarakah contracts in Islamic Financial Institutions with VOSviewer bibliometric study and literature review. The research was carried out for a p...