The Effect of Internal Factors and Exchange Rate on Sharia Banking Liquidity in Indonesia

Muh. Syahru Ramadhan (Department of Accounting, STIE Yapis Dompu, Nusa Tenggara Barat, Indonesia)
Rizkiana Iskandar (Department of Accounting, STIE Yapis Dompu, Nusa Tenggara Barat, Indonesia)
Yeye Suhaety (Department of Management, STIE Yapis Dompu, Nusa Tenggara Barat, Indonesia)
Nurul Hayat (Department of Management, STIE Yapis Dompu, Nusa Tenggara Barat, Indonesia)

JBMR: Journal of Business and Management Review
Vol. 3 No. 5 (2022): (Issue-May)

Islamic banking is quite unique because it prioritizes its operational activities on financing distribution, this raises a phenomenon related to liquidity problems. This study aims to examine the influence of internal factors, namely capital, credit risk level, third party funds, and external factors, namely the excange rate on the liquidity level of Islamic banks in Indonesia. This study uses a quantitative approach using purposive sampling method in sampling. The test was carried out with multiple linear regression. The results showed that capital and credit risk level can affect liquidity. Meanwhile, third party funds and exchange rates are not proven in determining the level of liquidity of Islamic banks in Indonesia.