Analysis of Effect of Non-Performing Financing (NPF), Inflation and Exchange Rate Against Islamic Bank Profitability
Mohammad Yusron Sholikhin (a), Sri Herianingrum (b), Rachmania Nurul Fitri Amijaya (a), Muhammad Dzulfaqori Jatnika (a)

a. Student of the Master of Science in Islamic Economics, School of Postgraduate, Universitas Airlangga
b. Department of Islamic Economics, Faculty of Business and Economics, Universitas Airlangga

Abstract

The development of Islamic banks in Indonesia growth significantly. This evidence has been almost 30 years of Islamic banks in Indonesia with various achievements. This condition becomes a great time to measure the performance of Islamic banks in Indonesia. Profitability is a measuring instrument used to measure the performance of Islamic banks. This study aims to examine the effect of Non-Performing Financing (NPF), inflation and exchange inlaid against Islamic bank profitability from 2008 to 2018. The method used is multiple linear regression analysis. Based on the analysis it is concluded that the variable Non-Performing Financing (NPF) and the exchange rate has a significant influence on the profitability of Islamic banks, while inflation has no significant effect on the profitability of Islamic banks in Indonesia.

Keywords: Non Performing Financing (NPF), Inflation, Exchange Rate, Profitability

Topic: Social and Economic Issues

Link: https://ifory.id/abstract-plain/YhVFXeZtU96x

Web Format | Corresponding Author (mohammad yusron sholikhin)