Proceeding International Pelita Bangsa
Vol. 1 No. 01 (2023): September 2023

Risk and Profitability of Islamic Banking in Indonesia : Granger Causality Test

Rakhmat, Adrianna Syariefur (Unknown)
Nurastuti, Preatmi (Unknown)
Fahamsyah, Mohammad Hatta (Unknown)



Article Info

Publish Date
30 Sep 2023

Abstract

This research discusses the two-way relationship between financing risk and profitability in Islamic banks. This research is a quantitative study. The data used is secondary data sourced from the Financial Services Authority regarding Islamic Bank Financing Risk or Non-Performing Financing (NPF) and Islamic Bank Profitability or Return on Assets (ROA) in June 2014-June 2023. This research tests the two-way relationship between NPF and ROA using the Granger Causality Test. This research finds that there is only a one-way relationship between ROA and NPF.

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Journal Info

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Subject

Civil Engineering, Building, Construction & Architecture Computer Science & IT Control & Systems Engineering Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Proceeding International Pelita Bangsa, published by Pelita Bangsa University. Proceeding International Pelita Bangsa accommodates the publication of research results in the fields of Business, Economics, Technology, Engineering, law and education conducted by lecturers as a manifestation of the Tri ...