Journal of Management and Business Innovations
Volume: 01, Number: 02, 2019

Influence of Financial Risk to The Profitability of Sharia Banking In Indonesia

Pani Akhiruddin Siregar (STAI Panca Budi Perdagangan Simalungun)
Amiur Nuruddin (Universitas Islam Negeri Sumatera Utara)
M. Yusuf (Universitas Negeri Medan)



Article Info

Publish Date
01 Sep 2019

Abstract

This research aims to deeply analyze the impact of CAR risk, NPF risk, BOPO risk, FDR risk and ROE risk to profitability. The profitability indicator is ROA variable. Quantitative data types in the form of monthly time-series data From The Financial Ratio Report of Sharia Commercial Bank and Sharia Business Unit published by Sharia Banking Directorate, Bank Indonesia and the Bank Licensing and Banking Information Department, Indonesia Financial Services Authority through Sharia Banking Statistics Bank Indonesia/Indonesia Financial Services Authority from January 2006 to January 2018.  The results showed: (1) A regression model on the independent variable simultaneously affects the dependent variable, so that the independent variable regression model can be used to predict the dependent variable; and (2) The CAR variable and FDR variable influential positive and significant toward ROA variable; NPF variable influential negative and significant toward ROA variable; BOPO variable influential negative and insignificant toward ROA variable; ROE variable influential positive and insignificant toward ROA variable.Keywords: financial risk, profitability, Sharia banking 

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Journal Info

Abbrev

jombi

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Journal of Management and Business Innovations (JOMBI) is an online peer-reviewed International research journal aiming at promoting and publishing original high quality research in all disciplines of management and business. JOMBI is a journal that published by the Department of Management, Faculty ...