Puji Sucia Sukmaningrum, - and Kashan Pirzada, - and Sylva Alif Rusmita, - and Fatin Fadhilah Hasib, - and Tika Widiastuti, - and Achsania Hendratmi, - (2020) Determinants of Islamic Bank Profitability: Evidence from Indonesia. GATR Journal of Finance and Banking Review, 5 (1). pp. 1-13. ISSN 0128-3103

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Abstract

Objective - Islamic Banks have a distinct advantage that is not only conduct a commercial operation, but to also conduct social operations. Therefore, Islamic Banks plays an important role in developing the Indonesian economy. The aim of this study is to investigate the impact of internal and external factors that affect the profitability of Islamic Banks in Indonesia. Methodology/Technique – The methodology of this research is multiple regression. The object of this research is the Islamic banking industry in Indonesia. Internal factors include size, liquidity, asset quality, management, and efficiency ratio. External factors include interest rate and inflation. Return on Assets is used to measure profitability. The monthly data is collected from the financial reports of Islamic Banks between 2011 to 2016. Findings – The findings show that size, liquidity, assets quality, management ratio, interest rate and inflation lead to a greater Return on Assets (profitability) in Islamic Banks in Indonesia. Efficiency however does not have a significant effect on profitability of Islamic Banks in Indonesia. Novelty – Based on the results of this research, it can be concluded that the Islamic banking industry can use those variables to improve the profitability of Islamic banks in the future. In addition, there are two variables that affect the profitability of Islamic banking industry. For the Islamic banking industry should anticipate the movement of inflation and interest to improve the profitability of Islamic banks.

Item Type:	Article
Uncontrolled Keywords:	Islamic Banks; Profitability; Internal Factors; External Factors; Indonesia.
Subjects:	H Social Sciences H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1-9999 Finance > HG1501-3550 Banking
Divisions:	04. Fakultas Ekonomi dan Bisnis > Ekonomi Syariah
Creators:	Creators NIM Puji Sucia Sukmaningrum, - NIDN0021128401 Kashan Pirzada, - UNSPECIFIED Sylva Alif Rusmita, - UNSPECIFIED Fatin Fadhilah Hasib, - UNSPECIFIED Tika Widiastuti, - NIDN0730128301 Achsania Hendratmi, - NIDN0730127503
Depositing User:	Tn Sugeng Riyanto
Date Deposited:	23 Nov 2022 00:04
Last Modified:	23 Nov 2022 00:04
URI:	http://repository.unair.ac.id/id/eprint/118796
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