The Determinats of Islamic Banking Profitability: Evidence from Indonesia
Moh Abdul Basir
Universitas Terbuka
Abstract
This study aims to analyze the determination of the financial performance of Islamic banks in Indonesia. Islamic bank financial performance is measured by Return on Assets (ROA). This study uses panel data of 11 Islamic banks from quarterly reports of Islamic Islamic banks in 2012 to 2018. The analytical tool used in this study is VAR. the results of this study indicate that CAR and GDP have a significant positive effect on ROA. While the BOPO variable and interest rates do not have an influence on ROA. These results indicate that Islamic banks have the ability to bear every financing channeled so as to increase profitability.
Keywords: Islamic bank, financial performance, ROA
Topic: Sharia economics and banking