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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Main Authors: Rahma Nurlaili, Titis Miranti
Format: Article
Language:English
Published: UIN Maulana Malik Ibrahim Malang 2023-06-01
Series:Maliki Islamic Economics Journal
Subjects:
Online Access:https://ejournal.uin-malang.ac.id/index.php/m-iecjournal/article/view/21719
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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
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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