IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-302-3_20.html

Does Non-Performing Financing and Capital Adequacy Impact Profitability of Islamic Banks in Indonesia?

In: Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2023)

Author

Listed:
  • Mokhammad Ridho

    (Universitas Negeri Malang, Faculty of Economics and Business)

  • Ely Siswanto

    (Universitas Negeri Malang, Faculty of Economics and Business)

Abstract

ABSTRACT This research seeks to investigate the correlation between the impact of Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), Financing to Deposit Ratio (FDR), and Operational Efficiency Ratio (OER) on the profitability of Islamic Banks, specifically the Return on Assets (ROA). The population in this study included Sharia Commercial Banks registered by the Financial Services Authority (OJK) and the sampling method was purposive sampling. The research data used are financial statements for the 2017-2022 period with a total sample of 14 Sharia Commercial Banks. The analysis method is Multiple Linear Regression processed by Stata. The results of multiple linear regression analysis showed that the Islamic commercial banks study population covering 20 bank quarterly financial statements had negative results on all variables and CAR and NPF had no significant effect on ROA, while FDR and OER had a significant relationship with ROA.

Suggested Citation

  • Mokhammad Ridho & Ely Siswanto, 2023. "Does Non-Performing Financing and Capital Adequacy Impact Profitability of Islamic Banks in Indonesia?," Advances in Economics, Business and Management Research, in: Ika Zutiasari & Dediek Tri Kurniawan (ed.), Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2023), pages 160-170, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-302-3_20
    DOI: 10.2991/978-94-6463-302-3_20
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:spr:advbcp:978-94-6463-302-3_20. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.