Assyarikah : Journal of Islamic Economic Business
Vol 4, No 1 (2023): Assyarikah: Journal Of Islamic Economic Business

Determinants of Profitability of Islamic Commercial Banks in Indonesia with Third-Party Funds as A Moderating Variable

Iqbal Rafiqi (Institut Dirosat Islamiyah Al-Amien Prenduan Sumenep)
Annisa Annisa (Institut Dirosat Islamiyah Al-Amien Prenduan Sumenep)



Article Info

Publish Date
30 Jun 2023

Abstract

Profitability is one of the ratios needed to assess the health of a bank. The health of a bank is a reflection of the current and future condition of the bank. So many factors that affect the level of profitability of a bank are reviewed from several existing studies. The purpose of this study is to find out whether the independent variables chosen by the researcher affect the profitability of the bank and whether third-party funds can moderate the relationship between the two. Sharia Commercial Banks (BUS) as many as 13 BUS became the population, while the research sample was 5 BUS choosen based on judgement / purposive sampling techniques. The data analysis technique used is moderated regression analysis with the SPSS20 application. Profitability is a dependent variable while the independent variables are capital adequacy ratio (CAR) and financing deposit to ratio (FDR), and third-party funds (DPK) as moderating variables. The results of the study based on the t-test of CAR, FDR and DPK did not have a significant effect on the profitability of Islamic Commercial Banks in Indonesia. And based on the results of the moderation regression analysis test, DPK can moderate the relationship between CAR and FDR variables to the profitability of Islamic Commercial Banks.

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Journal Info

Abbrev

Assyarikah

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Assyarikah: Journal of Islamic Economic Business is a scientific journal published to support the development of Islamic economics and Islamic finance. Journal of Assyarikah: Journal of Islamic Economics and Islamic Finance will contain articles related to Islamic economic studies in both ...