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

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

Authors
Mokhammad Ridho1, Ely Siswanto1, *
1Faculty of Economics and Business, Universitas Negeri Malang, Malang, Indonesia
*Corresponding author. Email: ely.siswanto.fe@um.ac.id
Corresponding Author
Ely Siswanto
Available Online 30 November 2023.
DOI
10.2991/978-94-6463-302-3_20How to use a DOI?
Keywords
Financial Performance; Profitability; Return on Assets
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.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
30 November 2023
ISBN
978-94-6463-302-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-302-3_20How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Mokhammad Ridho
AU  - Ely Siswanto
PY  - 2023
DA  - 2023/11/30
TI  - Does Non-Performing Financing and Capital Adequacy Impact Profitability of Islamic Banks in Indonesia?
BT  - Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2023)
PB  - Atlantis Press
SP  - 160
EP  - 170
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-302-3_20
DO  - 10.2991/978-94-6463-302-3_20
ID  - Ridho2023
ER  -