DIJB (Diponegoro International Journal of Business)
Vol 2, No 2 (2019)

The effect of inflation, profit-loss sharing loan, and capital adequacy towards performance of Indonesian Islamic banks

Luksi Visita (Universitas Islam Negeri Walisongo)



Article Info

Publish Date
16 Dec 2019

Abstract

The purpose of this study is to observe the impact of inflation, profit-loss sharing loan, and capital adequacy towards performance of Islamic banks in Indonesia. This study utilizes longitudinal study from 2010 to 2018 towards Islamic Commercial Banks and Sharia Business Units that are listed in Indonesia. Using pool-time series data, the variables studied are inflation, capital adequacy ratio (CAR), profit-loss sharing loan, and return on assets (ROA). The result shows that only inflation has no significant effect on performance. Capital adequacy affects positively significant, while profit-loss sharing loan affects negatively significant. This study add new perspective on how macroeconomic variable influence Islamic banks’ performance in Indonesia. Additionally, this study is also distinctive because of lengthier observation period (eight years) compared to other studies in recent five years

Copyrights © 2019






Journal Info

Abbrev

ijb

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Diponegoro International Journal of Business (DIJB) is a biannually peer-reviewed journal issued by Department of Management, Faculty of Economics and Business, Universitas Diponegoro. DIJB aims to be the media for publishing empirical issues related to business studies. DIJB invites manuscripts in ...