The Determinant of Islamic Bank Profitability and Stability in Indonesia Periods 2010-2017

DOI

10.2991/aebmr.k.210831.004How to use a DOI?

Keywords

Capital, Credit Risk, Islamic Banking, Inflation, Liquidity, Profitability, GDP, Stability

Abstract

Indonesia is the largest Muslim population globally, but literacy of Islamic finance and banking is still limited, which impacts the development of sharia banking in Indonesia, including literature on Profitability and Stabil-ity in Islamic Banking. The aim of this study was to determine the profitability and stability of 34 Islamic banks in Indonesia for the period 2010-2017. This study analyzes the factors that affect Islamic banking’s profitability and stability using panel data regression with fixed effect techniques. The results showed that Is-lamic banks’ profitability is determined by capital, credit risk, operational efficiency, liquidity risk, asset size, stability, GDP, and inflation. The results showed that Islamic banks’ profitability is determined by capital, credit risk, operational efficiency, liquidity risk, asset size, stability, GDP, and inflation. The results of Islamic banking stability found that profitability and credit risk impact bank stability, while the Asset Size, liquidity, Operating Effectiveness, inflation, and GDP do not affect the Islamic banks’ stability. These findings are sig-nificant for the growth and development of Islamic banks in Indonesia

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Dedi Supiyadi
PY  - 2021
DA  - 2021/09/02
TI  - The Determinant of Islamic Bank Profitability and Stability in Indonesia Periods 2010-2017
BT  - Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)
PB  - Atlantis Press
SP  - 16
EP  - 21
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210831.004
DO  - 10.2991/aebmr.k.210831.004
ID  - Supiyadi2021
ER  -