IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v8y2018i9p1175-1184id1736.html
   My bibliography  Save this article

Maqasid Sharia Index, Banking Risk and Performance Cases in Indonesian Islamic Banks

Author

Listed:
  • Sutrisno
  • Agus Widarjono

Abstract

In the operation, Islamic banking is assessed not only based on the banking risk management but also based on the maqasid sharia. The purpose of the study is to examine the influence of Maqasid Sharia and banking risk on Islamic bank performance. The performance of Islamic banks is measured by the return on assets (ROA), Maqasid Sharia proxied by Maqasid Sharia Index (MI), musharaka financing (MUS) and mudharaba financing (MUD), while banking risk is measured by Capital Adequacy Ratio (CAR), financing to deposit ratio (FDR), non-performing financing (NPF), and operating expense to operating income ratio (OEI). The population in this study is all of the Islamic commercial banks that operate in Indonesia, and there are as many as 13 of them. As the population is a little realistic, all of the population is taken as samples. The results show that the MI did not significantly affect the performance of Islamic banks, while MUS had a significant and positive impact on ROA and MUD had a significant but negative impact on ROA. NPF and OEI had a significant and negative effect on performance, but CAR and FDR had no significant effect on the performance of Islamic banks.

Suggested Citation

  • Sutrisno & Agus Widarjono, 2018. "Maqasid Sharia Index, Banking Risk and Performance Cases in Indonesian Islamic Banks," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(9), pages 1175-1184.
    • Handle: RePEc:asi:aeafrj:v:8:y:2018:i:9:p:1175-1184:id:1736
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1736/2599
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5002/article/view/1736/3786
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sutrisno Sutrisno & Agus Widarjono, 2022. "Is Profit–Loss-Sharing Financing Matter for Islamic Bank’s Profitability? The Indonesian Case," Risks, MDPI, vol. 10(11), pages 1-12, October.
    2. Agus Widarjono & Diana Wijayanti & Suharto Suharto, 2022. "Funding liquidity risk and asset risk of Indonesian Islamic rural banks," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2059911-205, December.
    3. Gholamreza Zandi & Muhammad Haseeb, 2019. "The Importance of Green Energy Consumption and Agriculture in Reducing Environmental Degradation: Evidence From Sub-Saharan African Countries," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 215-227, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:8:y:2018:i:9:p:1175-1184:id:1736. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.