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Journal : Jurnal Ar-Ribh

The Influence of Financial Performance on the Stability of Islamic Banks in Indonesia Agustuty, Lasty; Alam, Andi Rifqah Purnama; Afriyani, Afriyani; Yasin, Nurfatwa Andriani; Hariyanti, Hariyanti
Jurnal Ar-Ribh Vol. 8 No. 2 (2025): October 2025
Publisher : Universitas Muhammadiyah Makassar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.26618/jncsms57

Abstract

This study investigates the influence of financial performance on the stability of Islamic banks in Indonesia during the 2018–2023 period. The research uses a quantitative approach with panel data regression analysis conducted through EViews software. The sample consists of five Islamic Commercial Banks (BUS) that regularly publish monthly financial statements. Secondary data were obtained from official bank websites and the Financial Services Authority (OJK). The independent variables in this study include the Capital Adequacy Ratio (CAR), Net Operating Margin (NOM), and Net Performing Financing (NPF), while the dependent variable representing bank stability is proxied by the Z-Score of Return on Assets (ROA). The results reveal that CAR and NOM have a positive and significant impact on the stability of Islamic banks, indicating that strong capital adequacy and profitability enhance resilience and financial soundness. In contrast, NPF shows an insignificant effect on bank stability, suggesting that non-performing financing levels during the observed period were manageable and did not critically threaten financial stability. These findings support both signaling theory and financial intermediation theory, emphasizing that improved capital management and operational efficiency can enhance stakeholder confidence and maintain sustainable stability in Islamic banking. The study contributes to Islamic financial literature by providing empirical evidence on the determinants of financial stability, offering valuable insights for regulators and bank managers in developing strategies to strengthen the resilience of Islamic banking institutions in Indonesia.
Co-Authors Afriyani Afriyani Agus Utomo Ahmad Eddison Ahmad Muhibbin Aisyah Aisyah Al Rafni Alam, Andi Rifqah Purnama Alia Sari, Filma Amalia Amalia Angraini, Risa Dwi Anisa, Nurul Ansor, Nisa Aulia Apriani, Triana Ardestya Linanjung, Yolanda Arianti, Sri Dita Aris Munandar Artiyany, Megawhati Asmawiyah Asmawiyah Ayu Safira, Ayu Azzahra, Khadijah Brotojoyo, Endang Budi Halomoan Siregar Cecep Darmawan, Cecep Chandra, Ady Charisma, Shintia Lintang Cindy Cinthia Dadang Sundawa, Dadang Dary DN, Widia Ulan Delvia, Elyca Dian Nurmastuti Dini Handayani, Dini Djulaeka, Djulaeka Endang Saryanti Etin Diah Permanasari Fakhrana, Ayu Fatmawati, Sofia Fatmawati, Yuliana Indah Febriansyah Febriansyah Firmanto, Johan Dwi Gantini, Sri Nevi Grosman, Kingkel Panah Gumilang, Intan Hadi Sunaryo Hambali Hambali Hamidiyanti, Baiq Yuni Fitri HANIFAH RAHMI Harahap, Ramona Hasanah, Hikmatun Hikmah, Ikmalul Husnul Khatimah Indah Handayani, Wiwik Irayanti, Irma Irayanto, Irma Ismayani, Widya Istianah, Anif Judijanto, Loso Jumili Arianto Kalista, Anggia Kamalia, La Ode Kapriani Kapriani, Kapriani Kristianto, Jusuf L, Andreas Utomo Lasty Agustuty Leni Anggraeni Mahmudi, Bambang Manurung, Intan Zarina mariyani, dede Masganti Sit Masyitoh, Iim Siti Mufaqqih Amrullah, Bashirotul Muhammad Yusuf Murni Sulistyowati, Murni Muryati Muryati Nafi’ah, Khusnun Nashiroh, Annisa Laylatun nasution, candri wulan Nasution, Ummi Hani Novida, Diah Rachmawatie Nunuk Herawati Nur Azizah Nur Fatwa Basar NURJAYA NURJAYA, NURJAYA Nurlinda Nurlinda, Nurlinda Nuryanah, Nuryanah Nuryati Nuryati Pamungkas, Septiana Tri Permady, Gigieh Cahya Pramudika, Risang Galih Primahadi, Indra PRIYANTI, DHEA Putra, Christophorus Indra Wahyu Putri, Hilya Putri, Riska Amelia Radini, Radini Rahmat Rahmat Ratna Umi Nurlila Rina Ani Sapariyah Rizki Aulia Saefuloh, Irfan Saepudin Karta Sasmita Saputra, Ridwan Cahya Saputri, Aulia Indah Saragih, Sri Rahmah Dewi Sari Nurlaily, Sari Sari, Novriani Rahma Sari, Putri Lidiana Permata Sari, Retno Lia Sari, Wiwin Novita Sasmita, Saepudin Karta Sawitri, Nonik Wulan Septiana Novita Dewi Sholihah, Husna Imro’atush Siahaan, Matdio Sinambela, Helen F Siregar, Widia Friliska Sofiyani, Ratu Amada Subagio, Mochammad Suciati, Raihana Tresna Suhendra, Agus Suryani Manurung Susanti, Nani Irma Syabrina, Muhammad Thaha, Salmiyah Utama, Heriyanta Budi wati, Rizki amalia Wibowo Heru Prasetiyo Widaningsih Widaningsih, Widaningsih Widiarochmawati, Niniek Yasin, Nurfatwa Andriani Yesica Siahaan, Chrystin Yudi Supiyanto Yunarta, Farizki