Islamic Commercial Bank Performance: The Nexuses by Financial Ratios, Macro Economics, And Financial Technology
The objective of this study is to examine the relationship between various factors and the performance of Islamic commercial banks in Indonesia over the next 12 periods. The variables considered include Non-Performing Assets, Capital Adequacy Ratio, Insolvency-risk, Inflation, Financial Technology,...
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| Format: | Article |
| Language: | English |
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UIN Maulana Malik Ibrahim Malang
2023-06-01
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| Series: | Maliki Islamic Economics Journal |
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| Online Access: | https://ejournal.uin-malang.ac.id/index.php/m-iecjournal/article/view/21719 |
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| _version_ | 1846101495980752896 |
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| author | Rahma Nurlaili Titis Miranti |
| author_facet | Rahma Nurlaili Titis Miranti |
| author_sort | Rahma Nurlaili |
| collection | DOAJ |
| description | The objective of this study is to examine the relationship between various factors and the performance of Islamic commercial banks in Indonesia over the next 12 periods. The variables considered include Non-Performing Assets, Capital Adequacy Ratio, Insolvency-risk, Inflation, Financial Technology, and Bank Size. The research methodology employed is a quantitative approach with a descriptive analysis. The sampling technique utilized is saturated sampling, resulting in a total of 96 data points. The findings indicate that the Non-Performing Assets (NPA) variable has a significant impact on Return on Assets (ROA), while the ROA variable does not significantly affect the NPA variable. Additionally, the inflation variable does not have a statistically significant effect on ROA, and vice versa. In the short term, the variables that influence bank performance are NPA, Capital Adequacy Ratio, Insolvency-risk, Financial Technology, and Bank Size. In the long term, significant factors influencing bank performance are NPA, Insolvency-risk, Financial Technology, and Bank Size. The Impulse Response Function (IRF) test demonstrates that ROA shows a positive response to the impact of NPA, Capital Adequacy Ratio, Inflation, Financial Technology, and Bank Size, while it exhibits a negative response to shocks caused by inflation. Throughout the study period, the variable with the greatest contribution remains Financial Technology, followed by other variables. Ultimately, the aim of this study is to provide insights for future policy implementation and decision-making within companies |
| format | Article |
| id | doaj-art-8fe70df4be8f491999d4d76b8369327c |
| institution | Kabale University |
| issn | 2798-0383 2797-8125 |
| language | English |
| publishDate | 2023-06-01 |
| publisher | UIN Maulana Malik Ibrahim Malang |
| record_format | Article |
| series | Maliki Islamic Economics Journal |
| spelling | doaj-art-8fe70df4be8f491999d4d76b8369327c2024-12-29T10:48:34ZengUIN Maulana Malik Ibrahim MalangMaliki Islamic Economics Journal2798-03832797-81252023-06-0131466110.18860/miec.v3i1.217197154Islamic Commercial Bank Performance: The Nexuses by Financial Ratios, Macro Economics, And Financial TechnologyRahma Nurlaili0Titis Miranti1Universitas Islam Negeri Maulana Malik Ibrahim MalangUniversitas Islam Negeri Maulana Malik Ibrahim MalangThe objective of this study is to examine the relationship between various factors and the performance of Islamic commercial banks in Indonesia over the next 12 periods. The variables considered include Non-Performing Assets, Capital Adequacy Ratio, Insolvency-risk, Inflation, Financial Technology, and Bank Size. The research methodology employed is a quantitative approach with a descriptive analysis. The sampling technique utilized is saturated sampling, resulting in a total of 96 data points. The findings indicate that the Non-Performing Assets (NPA) variable has a significant impact on Return on Assets (ROA), while the ROA variable does not significantly affect the NPA variable. Additionally, the inflation variable does not have a statistically significant effect on ROA, and vice versa. In the short term, the variables that influence bank performance are NPA, Capital Adequacy Ratio, Insolvency-risk, Financial Technology, and Bank Size. In the long term, significant factors influencing bank performance are NPA, Insolvency-risk, Financial Technology, and Bank Size. The Impulse Response Function (IRF) test demonstrates that ROA shows a positive response to the impact of NPA, Capital Adequacy Ratio, Inflation, Financial Technology, and Bank Size, while it exhibits a negative response to shocks caused by inflation. Throughout the study period, the variable with the greatest contribution remains Financial Technology, followed by other variables. Ultimately, the aim of this study is to provide insights for future policy implementation and decision-making within companieshttps://ejournal.uin-malang.ac.id/index.php/m-iecjournal/article/view/21719bank performancefinancial ratiomacroeconomicfinancial technology |
| spellingShingle | Rahma Nurlaili Titis Miranti Islamic Commercial Bank Performance: The Nexuses by Financial Ratios, Macro Economics, And Financial Technology Maliki Islamic Economics Journal bank performance financial ratio macroeconomic financial technology |
| title | Islamic Commercial Bank Performance: The Nexuses by Financial Ratios, Macro Economics, And Financial Technology |
| title_full | Islamic Commercial Bank Performance: The Nexuses by Financial Ratios, Macro Economics, And Financial Technology |
| title_fullStr | Islamic Commercial Bank Performance: The Nexuses by Financial Ratios, Macro Economics, And Financial Technology |
| title_full_unstemmed | Islamic Commercial Bank Performance: The Nexuses by Financial Ratios, Macro Economics, And Financial Technology |
| title_short | Islamic Commercial Bank Performance: The Nexuses by Financial Ratios, Macro Economics, And Financial Technology |
| title_sort | islamic commercial bank performance the nexuses by financial ratios macro economics and financial technology |
| topic | bank performance financial ratio macroeconomic financial technology |
| url | https://ejournal.uin-malang.ac.id/index.php/m-iecjournal/article/view/21719 |
| work_keys_str_mv | AT rahmanurlaili islamiccommercialbankperformancethenexusesbyfinancialratiosmacroeconomicsandfinancialtechnology AT titismiranti islamiccommercialbankperformancethenexusesbyfinancialratiosmacroeconomicsandfinancialtechnology |