The Impact of Macroeconomic on Islamic Commercial Banks Profitability: Evidence from Indonesia
Rifyal Zuhdi Gultom (a*), Masrizal (b), Abu Bakar (b), Imron Mawardi (b)
a) Faculty of Economics and Business, Universitas Airlangga
Jalan Airlangga 4-6, Surabaya 60285, Indonesia
*rifyal.zuhdi-2017[at]pasca.unair.ac.id
b) Faculty of Economics and Business, Universitas Airlangga
Jalan Airlangga 4-6, Surabaya 60285, Indonesia
Abstract
This study aims to determine the effect of NPF, FDR, BOPO and Macroeconomic variables namely inflation, interest rates, exchange rates, CPI (corruption perceptions index) in the long and short term at Islamic commercial banks during the period 2009 until 2017. The object of this research is profitability islamic commercial bank. The type of data used is secondary data. This research method uses analytical techniques with quantitative methods namely Error Correction Model (ECM). The results of this emperical research show that the influence of corruption and interest rates had a significant positive effect in the long run. While BOPO has a significant negative effect in the long term and is significantly positive in the short term. NPF has a significant negative effect on the short term.
Keywords: Profitability, NPF, FDR, BOPO, Macroeconomic Variables, ECM
Topic: Social and Economic Issues