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An analysis on the factors affecting profitability level of Sharia banking in Indonesia
- Source :
- Banks and Bank Systems, Vol 11, Iss 3, Pp 28-36 (2016)
- Publication Year :
- 2016
- Publisher :
- LLC CPC Business Perspectives, 2016.
-
Abstract
- The purpose of this research is to analyze the influence of Capital Adequacy Ratio (CAR) Third Party Funds (TPF), Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), Operation Cost Operating Income (OCOI), Net Operating Margin (NOM), Gross Domestic Product (GDP), inflation and Return on Asset (ROA) as a proxy of Islamic bank’s profitability in Indonesia during 2011-2014 periods. The population of study was Sharia banking (BS) in Indonesia. Time series data from Indonesian Banking Statistics 2011-2014 were used as the primary data. Multiple linear regression was applied as method of analysis. The result shows that CAR, NPF, FDR and NOM did not affect profitability, while TPF, OCOI had negative effect on profitability. Meanwhile, GDP and inflation variable had significant effect with positive direction. Keywords: Sharia bank, ROA, TPF, NPF and inflation. JEL Classification: G21, E31
- Subjects :
- Marketing
Inflation
Organizational Behavior and Human Resource Management
Information retrieval
Index (economics)
business.industry
media_common.quotation_subject
05 social sciences
Scopus
Monetary economics
lcsh:HG1501-3550
Sharia
Management of Technology and Innovation
0502 economics and business
lcsh:Banking
050211 marketing
Profitability index
Business
Law
Publication
050212 sport, leisure & tourism
Finance
media_common
Subjects
Details
- ISSN :
- 19917074 and 18167403
- Volume :
- 11
- Database :
- OpenAIRE
- Journal :
- Banks and Bank Systems
- Accession number :
- edsair.doi.dedup.....9534b65cf68c2508401a9bf72a5f077d
- Full Text :
- https://doi.org/10.21511/bbs.11(3).2016.03