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Antecedents of Social Funds Productivity of Islamic Banks in Indonesia

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  • Andriyani, Lilik
  • Usman, Nurodin
  • Pambuko, Zulfikar Bagus

Abstract

Purpose: The study aims to analyse the social funds’ productivity of Islamic banks in Indonesia and the antecedents of it. The study will measure the social fund productivity followed by the investigation about the variable which can determine the Islamic bank productivity. Methodology: The study conducted at nine Islamic banks Indonesia. Two stages of the Malmquist productivity index were applied to annual data from 2012-2018. The variables which are tested its effect on social funds’ productivity return on asset, operational efficiency, inflation, OPEC oil price, and economic growth. Main Findings: social funds’ productivity of Islamic banks in Indonesia has experienced progress during the observation period. It is supported by the progress on technological change and efficiency change. The antecedents of social funds’ productivity return on asset and operational efficiency, while macroeconomics conditions have no significant effect on social funds’ productivity. Applications of this study: This study enriches the research on Islamic banks and gives the recommendation for policymakers to supervise better and for banks’ managers to improve the social funds’ productivity. Novelty/Originality of this study: This research is the preliminary study on the determinant of social funds’ productivity in Islamic banks.

Suggested Citation

  • Andriyani, Lilik & Usman, Nurodin & Pambuko, Zulfikar Bagus, 2020. "Antecedents of Social Funds Productivity of Islamic Banks in Indonesia," OSF Preprints 258jk, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:258jk
    DOI: 10.31219/osf.io/258jk
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    References listed on IDEAS

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    Cited by:

    1. Reazul Islam & Mustaffa Omar & Mahfuzur Rahman, 2023. "Islamic Social Funds to Foster Yunusian Social Business and Conventional Social Enterprises," Administrative Sciences, MDPI, vol. 13(4), pages 1-10, March.
    2. Mohammad Abdul Matin Chowdhury & Razali Haron, 2021. "The efficiency of Islamic Banks in the Southeast Asia (SEA) Region," Future Business Journal, Springer, vol. 7(1), pages 1-16, December.

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