Journal of Industrial Engineering & Management Research (JIEMAR)
Vol. 1 No. 4 (2020): December 2020

THE EFFECT OF INFLATION, INTEREST RATE, AND GROSS DOMESTIC PRODUCTS ON THE PROFITABILITY OF SHARIA BANKING IN INDONESIA (Sharia Banking Financial Reports 2014-2018)

Hidayat, Imam (Unknown)
Alwahidin, Alwahidin (Unknown)
Aspiani, Tetin (Unknown)



Article Info

Publish Date
21 Dec 2020

Abstract

This study aims to determine the effect of inflation, interest rates, and gross domestic product on Islamic banking's profitability in Indonesia. The research approach is a quantitative research using data in the form of time series in the 2014-2018 Islamic bank financial statements. The method used is descriptive statistical analysis, classic assumption test, and multiple regression equation tests using the SPSS 21 computer program. Based on the results of the research conducted, it can see that partially shows that inflation has a significant influence on the Profitability of Islamic Banking in Indonesia with smaller t counts from t table that is equal to 0.219 smaller than 2.040 and a significant value of 0.828 smaller than 0.999, the interest rate variable partially has a significant effect on the Profitability of Islamic Banking in Indonesia with t count smaller than t table that is -0.918 smaller than 2.040. A significant value of 0.365 is smaller than 0.999. The GDP variable significantly affects the Profitability of Islamic Banking in Indonesia with a count smaller than the t table that is equal to 0.371 smaller than 2.040 and a significant value of 0.713 smaller than 0.999. So it was concluded that the ups and downs of Sharia Banking Profitability are influencing by Inflation, Interest Rates, and Gross Domestic Product.

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Journal Info

Abbrev

jiemar

Publisher

Subject

Humanities Economics, Econometrics & Finance Education Industrial & Manufacturing Engineering

Description

The aim of JIEMAR ( Journal of Industrial Engineering & Management Research is to publish theoretical and empirical articles that are aimed to contrast and extend existing theories, and build new theories that contribute to advance our understanding of phenomena related with industrial engineering ...