Sharia Banking Performance Research Articles

Market orientation and change capability on an Indonesian sharia banking performance: the moderating effect of leadership religiosity

Purpose Changes are required to improve the performance of Sharia banking in Indonesia. Using dynamic capability theory, this study aims to analyze organizational learning, change process and change context (OCC) in Bank Syariah Indonesia as influenced by market orientation (competitor and customer orientation) and moderated by religiosity and its impact on organizational performance (Maqashid Sharia) using a multilevel perspective. Design/methodology/approach To test the hypothesis, this research surveyed by distributing online questionnaires to managers and employees at 62 branch offices of Bank Syariah, the largest Sharia bank in Indonesia. Data processing involved multilevel structural equational modeling with Mplus analysis software. Findings Market orientation determines an organization’s ability to change significantly, which leads to organizational performance being significantly moderated by religiosity. In OCC, organizational learning influences change context through change processes, ultimately influencing organizational performance (Maqashid Sharia). Originality/value This research used a multilevel perspective by combining market orientation and OCC variables moderated by religiosity and its impact on Maqashid Sharia. This study was conducted at the largest Sharia bank in Indonesia, Bank Syariah Indonesia.

Pengaruh Human Resource Management dan Leadership terhadap Kinerja Bisnis Bank Syariah (Unit Usaha Syariah)

The research aims to find out how the dependent variables human resources management and leadership relate to the performance of sharia banks (sharia business units). The research method uses a census by sending 20 questionnaires to Islamic banks (Sharia business units) which were carried out in the period July to September 2021. The results of data collection were processed using SPSS version 22 statistics. The research results showed that the dependent variables were human resources management and leadership partially and jointly influences the dependent variable of sharia bank business performance (sharia business unit) which is 82.7%. The implication of the research is that the concept of sharia finance is not only to maximize welfare and consumption through achieving sharia bank business performance but also to maintain a balance between material and spiritual satisfaction (maqashid sharia).

The Influence of Non-performing Financing and Financing To Deposit Ratio on Profitability in Sharia Commercial Banks in Indonesia

Islamic banks must also play an active role in building dynamics in society, one of which is financial profitability (ROA) and Non-performing Financing (NPF). Return on Assets (ROA) is a company's financial ratio that is related to profitability, measuring the company's ability to generate profits. Furthermore, if the NPF value of sharia banking decreases, it will increase the performance of sharia banks. This research aims to determine the effect of Non Performing Financing (NPF) and Financing To Deposit Ratio (FDR) on profitability at Sharia Commercial Banks in Indonesia. Panel data regression analysis is regression analysis based on panel data to observe the relationship between the dependent variable and the independent variable. The analytical method used in this research is the panel data analysis method using the classical assumption test (Ordinary Least Square) with the aim of carrying out the classical assumption test so that the estimator parameter values ​​are valid and unbiased. The research results found that NPF partially had no effect on the profitability of Sharia Commercial Banks in Indonesia, while FDR partially had an effect on the profitability of Sharia Commercial Banks in Indonesia.

Analisis Peran Otoritas Jasa Keuagan (OJK) Sumatera Barat dalam Mengawasi Kepatuhan Bank Syariah

In order to ensure sharia bank operations comply with sharia law and related banking regulations, this research was inspired by the role of the Financial Services Authority (OJK) in West Sumatra in supervising sharia banks' compliance with sharia regulations and the principles of effective supervision. The purpose of this research is to determine the extent of the role of the West Sumatra OJK in carrying out supervision in ensuring that Islamic banks comply with regulations relevant to their operations. This research uses written research with a qualitative approach. Written research is research conducted indirectly or interviews conducted virtually. Research conducted by utilizing technology and online resources conducted directly or face-to-face such as interviews, data collection, or access to information sources conducted online or via online platforms. In this research, the researcher gave questions to the staff of the OJK Bank Supervision office which were sent via OJK email which would later be answered indirectly (online). The object of this research was carried out at the West Sumatra OJK Office which is located at Jl. Khatib Sulaiman No. 68 Ulak Karang Selatan, North Padang District, Padang City, West Sumatra 25137. The following are the results of inspections carried out at the West Sumatra Financial Services Authority (OJK): 1) The West Sumatra Province Financial Services Authority (OJK) has the ability to assess and guarantee Sharia Banks in carrying out their operations. Its operations are in accordance with sharia principles. This is achieved through off-site monitoring and analysis of reports. Either through field supervision or direct OJK audit findings, or through submission of audit results by the bank. The aim is to protect the stability of the financial system, prevent risks that are detrimental to the economy, and ensure the security of customers’ trust in banking. Through OJK supervision, it will have an impact on the effectiveness of implementing sharia principles in operations, which will ultimately have an impact on improving the performance of sharia banks. 2) In order to ensure Sharia Banks comply with regulations, the West Sumatra Financial Services Authority (OJK) follows the values contained in supervision, including ideas for improving supervision now and in the future. Integrity, accountability, fair treatment, availability of information and reporting, effectiveness, adaptation, and cooperation between institutions and society are qualities that are included in the context of supervisory value.

The Influence of Directors’ Characteristics on the Social Performance of Sharia Banking in Indonesia

The primary objective of this study is to furnish empirical proof relating to the influence of characteristics of board directors on social performance (SP). The sample utilized in this study comprises Sharia banking companies in Indonesia that were listed by the Financial Services Authority (OJK) between 2008 and 2019, yielding a total of 134 observations. The sample selection utilized the purposive sampling technique combined with panel data analysis. The findings of this study demonstrate that the characteristics of board directors, as indicated by the number of board members and their educational backgrounds, exert a good influence on the social performance of Sharia banking in Indonesia. Conversely, the characteristics of board directors, specifically the presence of female directors, the educational level of board members, and their age do not exert any influence on the social performance of Sharia banking in Indonesia.

Reevaluating the Profitability, Performance, and Stability of Sharia Banks in Indonesia Using the Eagles Framework

Islamic banking in Indonesia has experienced rapid development in recent years. This encourages the importance of reviewing the financial performance of Islamic Commercial Banks (BUS) to determine the level of health and efficiency. The purpose of this study is to analyze the financial performance of BUS during the period 2018-2022 using the EAGLES method. As well as comparing financial performance between BUSs during the 2018-2022 period. This study uses quantitative methods with secondary data sourced from BUS Annual Reports for the 2018-2022 period. Financial performance is measured using the EAGLES method which includes ROA, ROE, NPF, DGR, LGR, FDR, CAR, and SRQ ratios. The results showed that there were differences in the ratios calculated on BUS during the 2018-2022 period. Overall, BUS shows a fairly healthy financial performance with some BUSs that have better performance than others. The conclusion of this study is that the financial performance of BUSs during the 2018-2022 period shows a positive trend with some BUSs that have better performance than others. The use of the EAGLES method provides a comprehensive overview of BUS financial performance and can be used to compare performance between BUSs.

Stability and Performance of Conventional and Sharia Banking in Indonesia Before and After the Covid-19 Pandemic

This study examines the impact of the COVID-19 outbreak on the performance and stability of Indonesia's dual banking system. Our sample includes the top 20 banks by assets, both conventional and sharia, from 2018 Q1 to 2023 Q3. Data for conventional banks is obtained from Bloomberg, while data for Islamic banks is sourced from each bank's official website. We use ROA, ROE, and NIM as performance variables and Z-Score and NPL as stability variables. External factors such as GDP, Inflation, BI Rate, and Exchange Rate serve as independent variables, while bank-specific variables act as controls. Panel data regression is used to determine causal relationships between these factors and banking performance and stability. We also compare bank performance and stability before and after COVID-19 using the Mann-Whitney Test. Findings indicate that the pandemic significantly affected conventional banks' Z-Score, NPL, ROA, ROE, and NIM, while only NPL was significantly affected in sharia banks. The results highlight the significant impact of GDP, exchange rate, and BI Rate on banking variables, while inflation had no effect. The type of bank significantly influences performance but not stability.

The Influence of Intellectual Capital (IC) and Islamic Corporate Governance (ICG) on Sharia Banking Performance in Indonesia in 2020-2022

The Influence of Intellectual Capital (IC) and Islamic Corporate Governance (ICG) on Sharia Banking Performance in Indonesia in 2020-2022

The Influence Of Corporate Governance on the Performance of Islamic Banks in Indonesia

This research was conducted with the aim of testing the influence of Corporate Governance on the performance of Sharia Banks. The measurement used to measure this independent variable is to analyze the total size of the board, audit committee, non-executive directors, sharia board and risk management committee. Quantitative data is used as research data by looking at the annual report of the company concerned. Sharia Bank is used as the object of this research. The sample was determined using a purposive sampling method and resulted in 13 Sharia Commercial Bank companies. The annual report for the 2018-2022 period is used as processed data obtained from the official website of the company concerned. This research analysis uses panel regression of company data. This research uses five independent variables consisting of Board Size, Non-Executive Directors, Audit Committee, Shariah Board, and Risk Management Committee. The dependent variable in this research is sharia bank performance which is measured using ROA (Return On Assets) and ROE (Return On Equity). This research uses panel regression. The F test results in this study were 0.014378 for ROA measurements and 0.0000 for ROE measurements. The adjusted R square test results are 0.282995 for ROA and 0.729184 for ROE. The conclusion of this research is that the board size variable obtained insignificant results. The non-executive director variable for ROA measurement shows significant results, while the ROE measurement is not significant. The audit committee variable obtained insignificant results. The sharia board variable produces insignificant results and the risk management committee variable produces insignificant results. The author was limited in completing this research because the researcher only used the Islamic banking sector, so in selecting the sample the data obtained was relatively small. Recommendations from researchers that can be given to other prospective researchers are to be more detailed in assessing the performance of Islamic banks. You can expand the independent and dependent variables

Analysis of Sharia Banking Performance Assessment with a Balanced Scorecard Perspective in the South Tangerang City Region

This research examines whether Sharia banks in South Tangerang City can achieve good performance if measured using the Balanced Score Card (BSC) approach from the perspective of finance, customers, internal business processes, and learning and growth. This field research observes population behaviour or events in a particular area. This research is descriptive and analytical. The research results show that Bank Syariah ABC UIN Syarif Hidayatullah Branch and Bank Syariah XYZ Ciputat Branch show adequate financial health, viewed from a financial perspective showing an increase in ROI of 3.14%, while Bank Syariah in 2022. Viewed from a customer perspective, the number of savings customers at Bank Syariah ABC has decreased by 1.25%. Meanwhile, from an internal business process perspective, Bank Syariah XYZ is not considered good enough because the response time is quite long when responding to customers. Viewed from a growth and learning perspective, the performance of these two Sharia banks is in good condition.

The Kruskal Wallis Analysis of Indonesian Sharia Banking Post-Merger

In 2020, the Ministry of BUMN decided to merge three Sharia banks in Indonesia, namely Bank Syariah Mandiri (BSM), BNI Syariah and BRI Syariah with the aim of contributing to the economy, increasing market share, as well as the aim of efficiency and increasing income from financing products. Since this phenomenon occurred, a lot of research has been carried out, one of which is examining the performance of Bank Syariah Indonesia after the merger process was carried out. This research aims to examine differences in the performance of Indonesian Sharia Banks in terms of efficiency and income aspects using the Kruskal Wallis method. It is hoped that this research can become a reference, knowledge and provide an overview for academics, the general public, customers and potential investors to assess whether the BUMN Ministry's decision to merge these three banks is considered effective and has had a positive impact on stakeholders and the banks themselves. The results of this study show that efficiency measured by EFF shows a difference, while P/L does not. Revenue as measured by ROA showed no difference, while NPM experienced changes after the merger.

PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PADA BANK UMUM SYARIAH DI INDONESIA

This research aims to empirically prove the influence of Good Corporate Governance on the financial performance of sharia banking. Based on the purposive sampling method, the samples obtained were 7 sharia banks that met the criteria. Research data was obtained from annual reports for the 2016-2021 period. The data in this research is quantitative data using secondary data. The analytical method used is multiple linear regression analysis of panel data. The research results show that the board of commissioners has a negative and significant effect on financial performance, because too many board of commissioners can reduce the company's profitability, the board of directors has a positive and significant effect on financial performance, the sharia supervisory board has a positive and significant effect on financial performance and the audit committee does not influence on financial performance. Together the board of commissioners, board of directors, sharia supervisory board and audit committee influence Return on Assets. Regarding efforts to improve financial performance, sharia commercial banks should focus more on the board of directors and sharia supervisory board. Because the better the board of directors and sharia supervisory board, the better the financial performance of sharia commercial banks in 2016-2018.

Comparative Analysis of Financial Performance of Sharia Banking and Conventional Banking

Comparative Analysis of Financial Performance of Sharia Banking and Conventional Banking

ANALISIS PERBANDINGAN CAMEL PADA BANK BCA SYARIAH SEBELUM DAN SELAMA PANDEMI COVID-19

The Covid-19 pandemic has had an impact on various aspects of the economy and business activities. The Covid-19 pandemic has an impact on banking and financial performance which will af ect the level of bank health. There is a way that can be done to determine the impact of the pandemic regarding bank health, namely by requiring objective and precise benchmarks. This research aims to analyze financial reports on the performance of Sharia Banks before the Covid-19 pandemic and during the Covid-19 pandemic. The data analysis method applied in this research is quantitative descriptive analysis. Quantitative analysis is a scientific method because it meets scientific principles, namely empirical concreteness, objective, measurable, rational and systematic. This analysis uses research data in the form of numbers and carries out statistical analysis (Sugiyono, 2013). Then, the analysis tool in this research uses the time series data analysis model. The sampling method in this research is Non-Probability Sampling. The sampling technique for this research is saturated sampling. 12 samples were applied before the Covid-19 pandemic and 12 samples were applied during the Covid-19 pandemic. The testing tool used is SPSS version 24. The research results show that the CAMEL method shows that in the Capital Adequacy Ratio, Non Performing Financing, BOPO ratios there is a significant dif erence between before the Covid-19 pandemic and during the Covid-19 pandemic, while the Return on Assets indicator shows that there is no significant dif erence between before and during the Covid-19 pandemic. Financing to Deposit Ratio shows that there is no significant dif erence between before and during the Covid-19 pandemic.

PENGARUH DANA PIHAK KETIGA, PEMBIAYAAN MUDHARABAH, DAN NPF TERHADAP LABA BERSIH BANK UMUM SYARIAH DI INDONESIA

Sharia banking measures the success of a company's performance using one important indicator, namely profit, increasing profits indicate better performance of sharia banking. Therefore, the aim of this research is to analyze factors that can influence profits at Islamic commercial banks in Indonesia, including third party funds, mudharabah financing, and non-performance financing. This research uses a quantitative approach, with secondary data obtained from the Financial Services Authority. This research was carried out using the multiple linear regression analysis method which aims to determine the influence of the independent variable on the dependent variable. Based on the research results, all independent variables, namely Third Party Funds, Mudharabah Financing, and Non-Performing Financing simultaneously have a significant influence on the dependent variable net profit. Based on the partial test, it shows that the Third Party Funds variable has a significant positive effect on net profit and Non-Performing Financing has a significant negative effect on net profit, while the Mudharabah Financing variable has no significant effect on net profit at Islamic commercial banks in Indonesia.

The Role of Green Banking Implementation in Sharia Banking Performance from an Islamic Perspective

The aim of this research is to determine the effect of implementing green banking on the profitability of Islamic commercial banks in Indonesia and the concept of green banking from an Islamic perspective. This research was conducted at Islamic commercial banks registered with the Financial Services Authority (OJK) for the 2016-2022 period. The population in this study consisted of 12 Islamic commercial banks. The sample selection used a non-probability sampling method with a purposive sampling technique and a sample of 8 Islamic commercial banks with 7 years of observation was obtained so that 56 research data were obtained. The hypothesis testing method in this research uses a panel data regression model with a Fixed Effect Model (FEM) approach using the EViews program. The urgency of this research is to see the impact of implementing green banking on Sharia banking performance, especially from an Islamic perspective. The research results show that Green Banking practices have a negative and insignificant effect on Sharia banking performance.

The Influence Of Narcissism and Tenure Of CEO On Indonesian Sharia Banking Performance

This researcher aims to explore how CEO narcissism affects banking performance in depth. This research aims to examine the relationship between CEO narcissism and CEO tenure on banking performance. Quantitative research methods were used in this research with purposive sampling which resulted in 64 samples from companies indexed on the Indonesia Stock Exchange from 2018 to 2021. This research was tested using the SPSS 21 application program. The results of this research provide evidence that CEO narcissism has a significant effect on performance. banking. CEO tenure does not have a significant effect on banking performance.

Comparison of Sharia Banking Performance in Malaysia and Indonesia According to Maqashid Sharia Perspectives

Comparison of Sharia Banking Performance in Malaysia and Indonesia According to Maqashid Sharia Perspectives

ANALISIS TINGKAT KESEHATAN MENGGUNAKAN METODE RGEC PADA PT. BANK SYARIAH INDONESIA, Tbk TAHUN 2020 – 2022

There are several factors that can influence the financial performance of sharia banks, So it is necessary to assess the health level of Islamic banks to determine whether the condition of a bank is healthy or unhealthy (Gultom, et al., 2022). This research aims to determine the level of bank health by applying the method RGEC at PT. Bank Syariah Indonesia, Tbk in 2020-2022.In this research, the RGEC This method includes several factors, the first is the riskprofile factor, the ratios used are net performing financing (NPF) and financing to debt ratio (FDR). The second factor is good corporate governance (GCG), which is good corporate governance. The third factor is earnings (profitability), the ratios used are return on assets (ROA), return of equity (ROE) and operating expenses to operating income (BOPO). The final factor in the RGEC method is the capital factor, using the capital adequacy ratio (CAR) as an assessment of the bank's health.In 2020 PT. Bank Syariah Indonesia, Tbk obtained an NPF of 1.72%, which means it was ranked 1st. FDR is 73.84%, which means it is ranked 1st. GCG gets a score of 2. ROA is 1.29%, which means it is ranked 2nd. ROE is 4.56%, which means it is ranked 2rd. BOPOgot 84%, which means it was ranked 1st. CAR gets 18.24%, which means it is ranked 1st. The results of the research show that the assessment of the health level of PT. Bank Syariah Indonesia, Tbk in 2020 obtained a score of 88.57%, which was ranked 1st. In 2021 PT. Bank Syariah Indonesia, Tbk obtained an NPF of 2.93%, which means it was ranked 1st. FDR is 72.69%, which means it is ranked 1st. GCG gets a score of 2. ROA is 1.53%, which means it is ranked 2nd. ROE is 12.11%, which means it is ranked 3rd. BOPO got 80%, which means it was ranked 1st. CAR got 22.09%, which means it was ranked 1st. The research results show that the 2021 health level assessment obtained a score of 88.57%, which is ranked 1st. In 2022 PT. Bank Syariah Indonesia, Tbk obtained an NPF of 2.24%, which means it was ranked 2nd. FDR is 78.50%, which means it is ranked 2nd. GCG gets a score of 2. ROA is 1.85%, which means it is ranked 1st. ROE is 12.87%, which means it is ranked 2nd. BOPO got 76%, which means it was ranked 1st. CAR got 20.29%, which means it was ranked 1st. The results of the research show that the assessment of the bank's health level in 2022 received a score of 88.57%, which is ranked 1st. This means that it can be concluded that from 2020-2022 PT. Bank Syariah Indonesia, Tbk received a very good assessment, obtaining a score of 88.57%, Composite Rank 1 with a very healthy predicate..

THE PERFORMANCE OF CONVENTIONAL BANKING AND SHARIA BANKING IN INDONESIA

Indonesia is a country with the largest Muslim population in the world. However, public interest in sharia banking in Indonesia is not as big as conventional banking. This study aims to identify how the performance of conventional banking and Sharia banking differs using the RGEC approach for the 2011-2020 period by looking at the difference test between the two banks. The difference test uses the Paired Sample T-Test and the Wilcoxon test. The findings show that there are performance differences between conventional banking and Sharia banking. The most significant difference is in profitability that using variable of ROA. Furthermore, a second test was carried out using panel regression to determine the factors that can affect the profitability of the two types of banking, using bank internal factors, namely the ratio of NPL or NPF ratio and LDR or FDR and LDR s well as well as external factors, including inflation and interest rates. The findings show that the NPL has a significant negative effect on the profitability of Sharia banks. Meanwhile, LDR has a negative effect on profitability of conventional bank. Interest rates have a positive and significant effect on both conventional and sharia banking, while inflation has no significant effect on the profitability of the two types of banks. These results indicate that both types of banking need to manage banking performance by utilizing interest rate instruments which have a positive impact on increasing profitability