Description of Capital Structure and Financial Performance of Sharia Bank in Indonesia

Abstract

An optimal capital structure can provide maximum profits for the company. So, it requires company value and reduces the risk of bankruptcy. This paper aims to describe the capital structure and financial performance of Sharia Banks in Indonesia. The method of study and data analysis means this research is included in the descriptive research category, which identifies various variables. The method used is survey research for which secondary data is available. The population used in this research is Sharia Banks listed on the Indonesia Stock Exchange in 2022, publish financial reports, and are registered with the Financial Services Authority (OJK) during the 2013-2022 period. The results of the analysis of this research description show that capital market growth has a role in financial performance. This means that the development of the capital market creates wider funding opportunities for Sharia Banks in Indonesia. With more accessible access to the capital market through the issuance of shares or bonds on the capital market, Islamic banks can expand their funding sources to support operational activities and business growth. This can help increase liquidity and financial stability at Sharia Banks in Indonesia to optimize capital market potential. Sharia Banks need to pay attention to and utilize capital market potential effectively. In this case, they can increase collaboration with capital market institutions, carry out a public offering (IPO) program, or use other cap