Manuscript Title:

MACROECONOMIC FACTORS AND THE PROFITABILITY OF SHARIA BANKS

Author:

MUHAMAD NAFIK HADI RYANDONO, ARI PRASETYO, MUHAMMAD ALKIROM WILDAN, MOCHAMAD ALI IMRON

DOI Number:

DOI:10.17605/OSF.IO/6QSVH

Published : 2021-12-10

About the author(s)

1. MUHAMAD NAFIK HADI RYANDONO - Universitas Airlangga, Indonesia.
2. ARI PRASETYO - Universitas Airlangga, Indonesia.
3. MUHAMMAD ALKIROM WILDAN - University of Trunojoyo Madura, Indonesia.
4. MOCHAMAD ALI IMRON - Universiti Teknologi PETRONAS, Malaysia.

Full Text : PDF

Abstract

This study assesses the factors that affect the profitability of Sharia banks in Indonesia. This study used Return on Asset (ROA) as a dependent variable, while independent variables include CAR, NPF, FDR, BOPO, DPK, Mudarabah financing, Murabaha financing, Interest Rate, and inflation. The research period from 2015 to 2020 using the autoregressive distributed lag (ARDL) approach. The study found that in the short term, NPF, FDR, BOPO, DPK, Mudarabah financing, Murabaha financing, and inflation are significant variables to profitability. In the long run, significant variables to profitability include CAR, BOPO, DPK, and Interest Rate. Mudarabah and BOPO financing are the variables that have the most impact on profitability. Therefore, sharia bank management needs to pay attention to the risks to financing using a revenue-sharing scheme.


Keywords

Profitability, financing, mudarabah, murabaha, ARDL.