VOLUME 1 ISSUE 2, 2019

The impact of macro economy toward profitability of Islamic bank

Yunice Karina Tumewang (Department of Accounting, Faculty of Business and Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia)
Rindang Nuri Isnaini (Department of Economics, Faculty of Business and Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia)
Jannatul Liutammima Musta’in (Department of Economics, Faculty of Economics and Business, Universitas Ahmad Dahlan, Yogyakarta, Indonesia)

Article Info

Publish Date
12 Jun 2020


Purpose: The aim of this study was to examine the impact of macro economy variables such as inflation, interest rate, and exchange rate toward the profitability of Islamic bank.Methodology: The research used quantitative approach through purposive sampling by using secondary data in the form of monthly time series from January 2015 to December 2012.Findings: The result shows that the inflation rate does not affect the bank income. The interest rate influences bank management in determining the level of margins and profit sharing so that partners continue to use Islamic bank products. In addition, the exchange rate does not have significant effect on the income of Islamic banks.Originality: As far as we are concerned, there are only few publications examining the effect of macro economy variable toward profitability of Islamic bank, particularly in the largest Muslim country during the period of December 2012-January 2015.

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Journal Info





Decision Sciences, Operations Research & Management Social Sciences Other


The Asian Journal of Islamic Management (AJIM) is a peer-review journal publishes quality and in-depth analysis on current issues within Asia and Islamic management topics. The journal publishes twice a year every June and December. AJIM welcomes strong and original evidence-based empirical studies ...