The Relationship between Maqasid Sharia and Profitability Ratio in Islamic Banking Industries Performance

Abstract

The study aims to analyse the moderating relationship between the return on assets (ROA) ratio with the Islamic maqasid ratio. This study uses several independent variables: financing to deposit ratio, labour cost ratio, promotions cost ratio, non-performing financing, and the ratio of financing distribution of micro, small and medium enterprises (MSMEs). The methodology used in this study is quantitative. The result of this study is that ROA significantly moderates the independent variables on ROA. Furthermore, the novelty of this research is to link the ratio of social and spiritual aspects with a balance of financial aspects.