Influence of Third-Party Funds, Car, NPF and FDR Towards the Return  on Assets of Islamic Banks in Indonesia

Kinanti, Risma Ayu; Purwohandoko, Purwohandoko

doi:10.31106/jema.v14i02.524

Cited by 20 publications

(35 citation statements)

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“…The results also showed that the amount of financing has a negative effect on ROA due to the high bank NPF. According to Abusharbeh (2014) also Kinanti and Purwohandoko (2017), an increase in funding leads to a rise in NPF, which further reduces ROA (Kinanti & Purwohandoko, 2017;Yusuf, 2017). Financing is the main source of bank income, therefore, the absence of barriers leads to a rise in financial growth (Fowowe, 2017).…”

Section: Resultsmentioning

confidence: 99%

“…This means that caution is needed in channeling financing to prevent inconsistencies. However, Sari and Murni (2016); Kinanti and Purwohandoko (2017); and Kassem and Sakr (2018) stated that loan to the ratio of third party funds has a positive effect on ROA. More specifically, Dang (2019) reported that an increase in loans had a positive effect on profitability.…”

Section: H3mentioning

confidence: 98%

“…However, assuming this assumption does not occur, then an increase in deposit funds causes a decrease in bank profitability. However, studies on banks in Indonesia show that third party funds (DPK) have a positive effect on ROA (Sari & Murni, 2016;Kinanti & Purwohandoko, 2017;Kassem & Sakr, 2018).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

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Evaluation Study: Does The Sharia Supervisory Board Have A Direct Effect on Profitability?

Mukhibad

Anisykurlillah

2020

muqtasid

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Previous studies have indicated a complex relationship between the total Sharia Supervisory Board (SSB) members and profitability. Therefore, this study suspects that financing products and bank fundraising mediate the relationship between SSB and ROA. SSB can provide consultation and supervision on the implementation of bank products. Data were obtained from 12 Islamic commercial banks in Indonesia with a 10-year observation period (2009-2018). Data were analyzed using fixed and random effect models and path analysis. The results showed that the total SSB members and their expertise did not have a direct effect on ROA. However, it has an effect on financing and none on Investment Account Holders (IAH) funds. The results also showed that financing proved to be a mediating variable on the effect between the total and expertise of SSB members towards ROA. The IAH fund is the mediating variable on the effect between the total SSB members towards ROA, with no proven relationship. Therefore, it can be concluded that SSB has an indirect effect on ROA by strengthening the financing and bank fundraising quality. Consultation and supervision carried out by SSB on the implementation of IAH financing and fundraising, has proved to have an impact on improving bank profitability

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Section: Resultsmentioning

confidence: 99%

Section: H3mentioning

confidence: 98%

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Evaluation Study: Does The Sharia Supervisory Board Have A Direct Effect on Profitability?

Mukhibad

Anisykurlillah

2020

muqtasid

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“…The level of capital availability as measured by the CAR ratio shows a bank's potential ability to generate profits as the results of the study; (Zahrah et al, 2019); (Anggreni, 2014); (Shamki et al, 2016); (Nahar & Prawoto, 2017); (Kinanti, 2017); (Amelia, 2015); (Hantono, 2017); (Sabir et al, 2012); (Chou & Buchdadi, 2016) and (Alshatti, 2016). Research with the opposite result was carried out by (Sudiyatno, 2013); (Wibowo, 2013), while research (A. Rifqah & Hassan, 2019) got significant adverse results.…”

Section: Literature Reviewmentioning

confidence: 52%

Performance analysis of sharia commercial banks in Indonesia before the covid pandemic period (2015-2019)

Handayani¹,

Rahmawati²,

Tubastuvi³

et al. 2021

IJRBS

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Overcoming the impact of the Covid pandemic on Islamic banking in Indonesia, management must take strategic steps based on predictions and previous performance identification. Identify performance, information on the factors that affect the performance of Islamic banking in Indonesia is needed. Several aspects that are considered to affect Islamic banking performance that management must consider are capital, liquidity aspects, credit risk, and efficiency. This research examines the influence of the aspects of capital (Capital Adequacy Ratio and Third Party Funds), liquidity (Finance to Debt Ratio ), credit risk (Non-Performing Financing).) and operational efficiency (BOPO) on the performance of Islamic banking in Indonesia 5 (five) years before the Covid pandemic occurred in Indonesia (2015-2019). The results showed that these five aspects had a simultaneous effect on Islamic banking performance in Indonesia, with a termination coefficient of 94.4%. Of the five variables, CAR, FDR, NPF, and BOPO significantly affect performance, while TPF has no significant effect on performance (Return on Assets).

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“…This can be caused by the interrupt variables that can change the interaction of loans distribute by bank against bank profitability. Non-performing loans (NPL), net interest margin (NIM) and operating expenses on operating income (OEOI) are variables that can influence bank's profitability (Puspitasari, Setiadi, and Rizkiyanti 2015), (Junaeni 2017), (Kinanti and Purwohandoko 2017). Therefore, NPL, NIM and OEOI can mediate the effect of LDR on ROA.…”

Section: Introductionmentioning

confidence: 99%

The Performance of Banks in Indonesia Based on Capital Perspective (BUKU), a case Study in a period of Decline in Profitability Performance

Akbar

2019

AFMJ

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This study aims to analyze and obtain empirical evidence regarding the effect of LDR on bank's profitability, and the variables that can moderate the influence of LDR on ROA. The object of this research is banks listed on the Indonesia Stock Exchange for the period of 2013 to 2016. 25 banks were selected using the purposive sampling method. The research object was divided into two categories, namely BUKU 1 and BUKU 2 banks, and BUKU 3 and BUKU 4 banks. The results showed that BUKU 1 and BUKU 2 banks were influenced by LDR and BI rate. Then, it moderated by OEOI. The study does not support the hypothesis that the NPL and NIM of BUKU 1 and BUKU 2 banks can moderate the influence of the LDR variable on ROA. While the influence of LDR on ROA of BUKU 3 and BUKU 4 banks was moderated by NIM and OEOI. The study does not support the hypothesis that the NPL of BUKU 3 and BUKU 4 banks can moderate the influence of the LDR variable on ROA.This study also supports the statement that the BI rate gives more influence to BUKU 1 and BUKU 2 banks than banks in the BUKU 3 and BUKU 4 categories.

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Influence of Third-Party Funds, Car, NPF and FDR Towards the Return on Assets of Islamic Banks in Indonesia

Cited by 20 publications

References 0 publications

Evaluation Study: Does The Sharia Supervisory Board Have A Direct Effect on Profitability?

Evaluation Study: Does The Sharia Supervisory Board Have A Direct Effect on Profitability?

Performance analysis of sharia commercial banks in Indonesia before the covid pandemic period (2015-2019)

The Performance of Banks in Indonesia Based on Capital Perspective (BUKU), a case Study in a period of Decline in Profitability Performance

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