Abstract

This research is categorized as quantitative research. While the research design used in this research is correlation analysis, which is a type of research carried out with the aim of detecting the extent to which variations in a factor are correlated with one or more other factors based on the correlation coefficient. The research objective is to explain the effect and hypothesis testing by analyzing various data in the field. In the context of this research is to obtain facts from existing phenomena and to seek factual information about the improvement of Islamic banking financial performance. The population in this study were 11 Islamic banks in Indonesia with a 3-year observation period 2018-2020. The technique for determining the number of samples used was the saturated sample method in which the number of sample observations was 33 observation data. Data collection methods used in this study are primary data and secondary data. The results showed that Liquidity Risk has a positive and significant effect on Islamic Banking Financial Performance. Net Interest Margin has a positive and significant effect on Islamic Banking Financial Performance, Good Corporate Governance has no and significant effect on Islamic Banking Financial Performance and simultaneously Liquidity Risk, Net Interest Margin and Good Corporate Governance have a positive and significant effect on Islamic Banking Financial Performance. 
 
 JEL: G30; G10; G24
 
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Highlights

  • Islamic banking is a form of national banking that bases its operations on Islamic sharia

  • It can be understood that if a Sharia Bank can increase or decrease its liquidity, this will directly impact the financial performance of the Bank

  • This means that the increase in Net Interest Margin, the higher the Return on Assets will be by 0.002. These results are consistent with research conducted by Ali & Roosaleh (2017). This is because if Islamic banks can apply and generate net interest margin, it will indicate a good company performance, meaning that any increase in income growth is seen from a good interest margin, financial performance will grow well which will lead to the progress of the company and will have an impact on the maximum achievement of the company's targets

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Summary

Introduction

Islamic banking is a form of national banking that bases its operations on Islamic sharia. Net Interest Margin is used to measure the level of bank management to generate income from interest by looking at the performance of banks in channeling credit, European Journal of Economic and Financial Research - Volume 4 │ Issue 4 │ 2021. Managerial ownership for the number of share ownership owned by the owner, the executive board, and management in a company, the board of commissioners is the company's organ responsible for general oversight and/ or in accordance with the articles of association and provide advice to the board of directors (based on Law No. of 2007 on limited liability companies). Bank performance is a description of the achievements of the bank in its operations, both in terms of financial, marketing, collection and distribution of funds, technology and human resources. Effectiveness management has the ability to choose the right goals to achieve the goals that have been set

Literature Review
Research Methods
Results and Discussion
Conclusion

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