Abstract

This study investigates the determinants of financial performance in Indonesian Islamic banks, focusing on the Financing to Deposit Ratio (FDR) and Capital Adequacy Ratio (CAR) as key indicators. Utilizing data from Bank Syariah Indonesia (BSI) and Bank Muamalat Indonesia (BMI) between 2016 and 2020, the research employs Ordinary Least Squares (OLS) regression analysis to examine the influence of Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), and Capital Employed Efficiency (CEE) on FDR and CAR. The findings reveal that while CEE has a statistically significant negative relationship with FDR, the model for CAR lacks a statistically significant fit. This research contributes to understanding the role of intellectual capital in Islamic banking performance and offers insights for stakeholders in the Indonesian Islamic finance sector, with implications for the post-pandemic era.

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