ASIAN JOURNAL OF ISLAMIC MANAGEMENT (AJIM)
VOLUME 4 ISSUE 2, 2022

Determining the main factors of Islamic banks’ profitability in Indonesia: Does Covid-19 crisis play an important role?

Ahmad Munawar (Unknown)
Sulaeman (Unknown)



Article Info

Publish Date
10 Jan 2023

Abstract

Purpose – This research aims to investigate the main factors of Islamic banks’ profitability before and after the pandemic COVID-19 in Indonesia. Methodology – The sample of this study is ten Islamic commercial banks that have complete data and are registered with Bank Indonesia. The data was analyzed by using a data panel regression estimation model based on the best estimation model which is the random effect model or REM. Findings – Based on the result of the REM model, the study finds that both Islamic banks' internal variables such as NPF and OEF except CAR and FDR, and Islamic bank’s external variables such as the Covid-19 crisis variables are significant in determining Islamic banking profitability In Indonesia. Implications – The present research has implications for Islamic bank management and policy-makers as well as researchers.Originality – This study will become one of the pioneers to examine empirically determining the main factors of Islamic banks' profitability before and post-Covid-19 in Indonesia. The findings will contribute to minimizing the negative impact of economic crises like the Covid-19 outbreak in Indonesia.

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Journal Info

Abbrev

AJIM

Publisher

Subject

Decision Sciences, Operations Research & Management Social Sciences Other

Description

The Asian Journal of Islamic Management (AJIM) is a peer-review journal publishes quality and in-depth analysis on current issues within Asia and Islamic management topics. The journal publishes twice a year every June and December. AJIM welcomes strong and original evidence-based empirical studies ...