Financial Performance Determinant of Islamic Banking in Indonesia

Hasan Mukhibad • Muhammad Khafid
Journal article Jurnal Keuangan dan Perbankan • Juli 2018 Indonesia

Unduh teks lengkap
(English, 12 pages)

Abstrak

The rapid growth of Islamic banks also occured in Indonesia. The high growth of Islamic banks' assets gave opportunities to increase bad debt (non-performing financing). We examined the impact of good corporate governance (GCG), number of sharia supervisory board (SSB), financing to deposit ratio (FDR), profit and loss sharing (PLS) financing ratio, profit sharing rate of financing, and temporary syirkah fund ratio on the performance of non-performance financing (NPF) and return on assets (ROA). This research also tested the influence of NPF on ROA. The population of this research was Islamic commercial banks in Indonesia with the observation ranged from 2009-2016. The samples were determined by using a purposive sampling method. Data analysis used a structural equation model with WarpPLS. We proved that empirically GCG disclosure did not affect NPF. NPF bank was influenced by PLS financing and temporary syirkah fund ratio. PLS financing income and FDR financing did not affect the NPF. Moreover, GCG, SSB, temporary syirkah fund, and NPF disclosures influenced profitabilityJEL Classification: G31, G32, G34DOI: https://doi.org/10.26905/jkdp.v22i3.2061

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Jurnal

Jurnal Keuangan dan Perbankan

Jurnal Keuangan dan Perbankan (JKP) adalah publikasi dari Program Studi Keuangan dan Perbankan Un... tampilkan semua