Review of Islamic Economics and Finance
Vol 7, No 2 (2024): Review of Islamic Economics and Finance (RIEF): November 2024

Factors Affecting Islamic Bank Financial Performance

Muhammad, Mumuh (Unknown)
Sarı, Emre Selçuk (Unknown)
Umarovich, Kholdorov Sardor (Unknown)
Takidah, Erika (Unknown)
Pertiwi, Risa Sari (Unknown)



Article Info

Publish Date
11 Dec 2024

Abstract

Purpose – This study aims to investigate the factors affecting financial performance in Islamic banks.Methodology - The quantitative approach is applied in this study with panel data analysis as analysis tool. This study measures the performance of Islamic Banks (IBs) in Türkiye and Indonesia. In total, there are 5 and 11 Islamic banks in Türkiye and Indonesia respectively used in this study, resulting 109 samples to analyze. Findings - The results show that bank size, capital ratio, operating expense ratio and inflation are found to be significant on Return on Avergae Assets (ROAA) positively. However, bank age and loan ratio do not have significant effect on ROAA. It is important to evaluate these factors to improve financial performance of Islamic bank in both countries as big Muslim population.

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Journal Info

Abbrev

rief

Publisher

Subject

Economics, Econometrics & Finance

Description

The aims of this Journal is to promote a principled approach to research on Islamic macroeconomics, Islamic microeconomics, Islamic development economics, Islamic monetary economics, Islamic public economics, Islamic political economics, Islamic leisure toursm, and Islamic financial technology. ...