Abstract

<p><span lang="EN-US">The aim of this research is to determine the effect of macroeconomic funda</span><span>-</span><span lang="EN-US">mentals on financial performance with deposits as intervening variables in sharia banking in Indonesia. The research of macroeconomic fundamentals in the banking sector is an important component </span><span>for</span><span lang="EN-US"> improving the bank's financial performance. The research samples were all sharia public banks of year 2014 until 2017. By using purposive sampling method, data analysis </span><span>in this research </span><span lang="EN-US">applied Partial Least Square. The results of this research indicated that macroeconomic fundamentals and deposits have a positive effect on financial performance. The results of the stud</span><span>y</span><span lang="EN-US"> have some implications for policies which </span><span>can </span><span lang="EN-US">help </span><span>to </span><span lang="EN-US">improve the performance of the </span><span>sharia </span><span lang="EN-US">banking sector.</span></p>

Highlights

  • A performance reflects an institution's ability to manage and allocate its resources, so performance becomes an important thing that every institution needs to achieve

  • At the level of significance (α) = 0.05, the value of t arithmetic is greater than the value of t table of 2.023. This indicates that Macroeconomic Fundamentals have a positive effect on Time Deposit

  • This means that the higher the Macroeconomic Fundamentals (American exchange rate) is, the higher the Time Deposit rate will become

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Summary

Introduction

A performance reflects an institution's ability to manage and allocate its resources, so performance becomes an important thing that every institution needs to achieve. The performance of banks in general is a description of the achievements which is achieved by banks in their operations. The bank's financial performance is a description of the bank's financial conditions for a certain period, whether it covers the fund raising aspects or its fund distributions. The performance shows anything related to the strengths and weaknesses of a company. A bank performance can be measured by analyzing and evaluating its financial statements. The financial position and financial performance information in the past is often used as a basis for predicting future financial and performance positions and other things which immediately attract the attention of users, such as dividend payments, wages, securities price movements, and the ability of the company to fulfill its commitments when it matures. The performance of sharia banking in Indonesia during 2014-2016 is shown in Table 1 below

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