Jurnal Ekonomi, Bisnis & Entrepreneurship (e-Journal)
Vol. 15 No. 1 (2021): Jurnal Ekonomi, Bisnis & Entrepreneurship (e-Journal)

Factors Affecting the Profitability of Sharia Banking

Aris Supriadi (Universitas Sultan Ageng Tirtayasa, Serang, Banten)
Agus Ismaya Hasanudin (Universitas Sultan Ageng Tirtayasa, Serang, Banten)
Lia Uzliawati (Universitas Sultan Ageng Tirtayasa, Serang, Banten)
Anggi Haerani (Universitas Sultan Ageng Tirtayasa, Serang, Banten)



Article Info

Publish Date
15 Apr 2021

Abstract

This study aims to examine the factors that affect the Profitability of Islamic banking, such as Corporate Governance (CG), Financing to Deposit Ratio (FDR), Non-Performing Financing (NPF), and Capital Adequacy Ratio (CAR). This research is quantitative. The type of data used in this research is secondary data. Data processing using the multiple linear regression approach. The results showed that Corporate Governance had a significant positive effect on Profitability. Financing to Deposit Ratio has a significant positive effect on Profitability. Non-Performing Financing has a significant negative effect on Profitability. Capital Adequacy Ratio has a significant positive effect on Profitability. Corporate Governance has a positive effect on the Capital Adequacy Ratio. Financing to Deposit Ratio does not have a positive effect on the Capital Adequacy Ratio. Non-Performing Financing has a significant positive effect on the Capital Adequacy Ratio. Corporate Governance does not have a positive effect on Profitability through the Capital Adequacy Ratio. Financing to Deposit Ratio has an effect on Profitability through the Capital Adequacy Ratio. Non-Performing Financing has no effect on Profitability through the Capital Adequacy Ratio. Increasing banking profits, the banking management can take measures such as keeping the NPF in a safe position, maintaining the quality of productive assets, planning and arranging credit evaluations more carefully and selectively by using the principle of prudence.

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Journal Info

Abbrev

jebe

Publisher

Subject

Economics, Econometrics & Finance

Description

The focus areas of the journal include, but are not limited to: Economic theories and models: The journal welcomes articles that explore and analyze economic theories, models, and frameworks to understand the behavior of markets, industries, and economies. Management practices and strategies: ...