BANK’S PROFITABILITY IN INDONESIA: CASE STUDY OF ISLAMIC BANKS PERIOD 2008-2012

Islamic banking is industry sector that contributes to influence the country’s economic growth. As it is necessary to control the quality of bank performance, being banking regulator, Bank Indonesia has responsibility to assess the financial performance of the banks, among which is to see the level...

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Autores principales:	Faiza Husnayeni Nahar, Nano Prawoto
Formato:	article
Lenguaje:	EN
Publicado:	Universitas Muhammadiyah Yogyakarta 2017
Materias:	bank’s profitability, economic growth, panel data Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/09c9850b47ff4955b6fc0f17e48f4fbe
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spelling	oai:doaj.org-article:09c9850b47ff4955b6fc0f17e48f4fbe2021-12-02T11:21:29ZBANK’S PROFITABILITY IN INDONESIA: CASE STUDY OF ISLAMIC BANKS PERIOD 2008-20121411-99002541-5506https://doaj.org/article/09c9850b47ff4955b6fc0f17e48f4fbe2017-10-01T00:00:00Zhttps://journal.umy.ac.id/index.php/esp/article/view/4043https://doaj.org/toc/1411-9900https://doaj.org/toc/2541-5506Islamic banking is industry sector that contributes to influence the country’s economic growth. As it is necessary to control the quality of bank performance, being banking regulator, Bank Indonesia has responsibility to assess the financial performance of the banks, among which is to see the level of profitability by using Return on Assets (ROA) ratio. The aim of this study is to empirically test a model that links factors such as inflation, Gross Domestic Product (GDP), Capital Adequacy Ratio (CAR), Financing Deposit Ratio (FDR), Non Performing Financing Ratio (NPF) and Operating Expenses over Operating Income (BOPO) to profitability of Islamic Banks in Indonesia from January 2008 to December 2012. This study use panel data of Islamic banks from monthly financial statement data published by Bank Indonesia. The empirical findings of this paper suggest that inflation, GDP, NPF are found statistically positive significant to bank profitability while CAR, FDR and BOPO have negative sign and statistically significant to bank profitability. Since society prefers to do transaction such as saving and invest money with bank which has good performance. It indirectly contributes to increase the Indonesian economic growth.Faiza Husnayeni NaharNano PrawotoUniversitas Muhammadiyah Yogyakartaarticlebank’s profitability, economic growth, panel dataEconomic theory. DemographyHB1-3840ENJurnal Ekonomi & Studi Pembangunan, Vol 18, Iss 2, Pp 164-172 (2017)
institution	DOAJ
collection	DOAJ
language	EN
topic	bank’s profitability, economic growth, panel data Economic theory. Demography HB1-3840
spellingShingle	bank’s profitability, economic growth, panel data Economic theory. Demography HB1-3840 Faiza Husnayeni Nahar Nano Prawoto BANK’S PROFITABILITY IN INDONESIA: CASE STUDY OF ISLAMIC BANKS PERIOD 2008-2012
description	Islamic banking is industry sector that contributes to influence the country’s economic growth. As it is necessary to control the quality of bank performance, being banking regulator, Bank Indonesia has responsibility to assess the financial performance of the banks, among which is to see the level of profitability by using Return on Assets (ROA) ratio. The aim of this study is to empirically test a model that links factors such as inflation, Gross Domestic Product (GDP), Capital Adequacy Ratio (CAR), Financing Deposit Ratio (FDR), Non Performing Financing Ratio (NPF) and Operating Expenses over Operating Income (BOPO) to profitability of Islamic Banks in Indonesia from January 2008 to December 2012. This study use panel data of Islamic banks from monthly financial statement data published by Bank Indonesia. The empirical findings of this paper suggest that inflation, GDP, NPF are found statistically positive significant to bank profitability while CAR, FDR and BOPO have negative sign and statistically significant to bank profitability. Since society prefers to do transaction such as saving and invest money with bank which has good performance. It indirectly contributes to increase the Indonesian economic growth.
format	article
author	Faiza Husnayeni Nahar Nano Prawoto
author_facet	Faiza Husnayeni Nahar Nano Prawoto
author_sort	Faiza Husnayeni Nahar
title	BANK’S PROFITABILITY IN INDONESIA: CASE STUDY OF ISLAMIC BANKS PERIOD 2008-2012
title_short	BANK’S PROFITABILITY IN INDONESIA: CASE STUDY OF ISLAMIC BANKS PERIOD 2008-2012
title_full	BANK’S PROFITABILITY IN INDONESIA: CASE STUDY OF ISLAMIC BANKS PERIOD 2008-2012
title_fullStr	BANK’S PROFITABILITY IN INDONESIA: CASE STUDY OF ISLAMIC BANKS PERIOD 2008-2012
title_full_unstemmed	BANK’S PROFITABILITY IN INDONESIA: CASE STUDY OF ISLAMIC BANKS PERIOD 2008-2012
title_sort	bank’s profitability in indonesia: case study of islamic banks period 2008-2012
publisher	Universitas Muhammadiyah Yogyakarta
publishDate	2017
url	https://doaj.org/article/09c9850b47ff4955b6fc0f17e48f4fbe
work_keys_str_mv	AT faizahusnayeninahar banksprofitabilityinindonesiacasestudyofislamicbanksperiod20082012 AT nanoprawoto banksprofitabilityinindonesiacasestudyofislamicbanksperiod20082012
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BANK’S PROFITABILITY IN INDONESIA: CASE STUDY OF ISLAMIC BANKS PERIOD 2008-2012

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