Khatulistiwa
Vol 13, No 2 (2023)

THE EFFECT OF INFLATION AND INTEREST RATE ON PROFITABILITY FOR SHARIA BANKING RESULTS

Syahril Ramadhon Alamsyah (STEBIS KOTA PAGAR ALAM)



Article Info

Publish Date
11 Sep 2023

Abstract

This study was conducted to examine the effect of the inflation variable on the profitability of Islamic banking profit sharing in Indonesia, as well as to test whether there is an asymmetric effect of inflation and interest rate variables on the profitability of Islamic banking profit sharing in Indonesia, the study was conducted using agency theory, portfolio selection and policy. monetary. This study uses a quantitative method, the regression tool used is the Non-linear Autoregressive Lag Model (NARDL) using the Eviews 10 data processing tool, the sample of this study is Islamic banking registered with the Financial Services Authority (OJK), with an observation period from 2014 -2020. The results of this study indicate that inflation and interest rate variables have an asymmetric relationship to the profitability of Islamic banking in Indonesia, namely when inflation and interest rates rise, the effect is smaller than when inflation and interest rates fallKeywords: Profitability, Asymmetric, Inflation, Interest Rate, NARDL

Copyrights © 2023






Journal Info

Abbrev

khatulistiwa

Publisher

Subject

Religion Social Sciences

Description

KHATULISTIWA: Journal of Islamic Studies welcome papers from academicias on theories, philoshopy, conceptual paradigms, academic research, as wel as religion practices, in particular, papers which consider the following general topics are invited; Islamic education, Islamic Law, Islamic Economic and ...