Sharia Commercial Banks In Indonesia Research Articles

The Effect of Musyarakah, Mudharabah, and Murabahah Financing on The Financial Performance of Sharia Commercial Banks in Indonesia

This study aims to determine the effect of musharakah, mudharabah, and murabahah financing on the financial performance of Sharia Commercial Banks in Indonesia. This type of research is quantitative research. This research uses secondary data in the form of annual financial reports of Sharia Commercial Banks in Indonesia for the period 2010-2019 sourced from the Financial Services Authority (OJK) website. Through purposive sampling technique, 11 bank samples were obtained which produced 96 observational data. The results of the analysis show that musharakah financing does not affect the financial performance (ROA) of Sharia Commercial Banks in Indonesia, while mudharabah and murabahah financing has a positive and significant effect on the financial performance (ROA) of Sharia Commercial Banks in Indonesia. it is concluded that the greater the value of musharakah financing distributed is not a guarantee that financial performance (ROA) will increase. This is because musharakah financing is financing with a profit-sharing system that has a very high risk where if the company experiences losses, the bank will also bear the loss of business run by entrepreneurs. Nevertheless, Islamic banking is expected to maintain and increase the amount of profit-sharing based financing such as musharakah.

Effects of Internal Finance, Islamic Governance and Islamic Corporate Responsibility on Profitability: Evidence of Islamic Banking in Indonesia

Purpose: The objective of this study was analyze the interrelationships of internal financial factors, which include financing risk and capital adequacy, ICG and ICSR as determinants of ROA in Islamic banking in Indonesia. Theoretical framework: Previous studies have provided mixed results regarding the application of ICG to profitability. Therefore, it is necessary to re-examine the implementation of ICG on the profitability of Islamic banks. Design/methodology/approach: The research sample consist of 14 sharia commercial banks in Indonesia in the study period 2012 to 2021 with a total of 130 observations. This study used multiple regression analysis. Findings: The results showed a negative effect of NPF on ROA financial performance. Furthermore, there was a positive effect of CAR and ICG disclosure on ROA financial performance. Meanwhile, disclosure of ICSR had no significant effect on ROA financial performance. Age control variables and Islamic bank size were found to have no effect on ROA. Research, Practical & Social implications: The government can make a regulation requiring Islamic banks in Indonesia to carry out ICSR because it is more suitable with business forms that use Islamic concepts. Originality/value: This study offers an examination of the factors affecting financial performance of financial and non-financial factors. Financial factors are seen in terms of financing risk and capital adequacy while non-financial factors are represented by sharia governance and sharia social responsibility in sharia commercial banks in Indonesia.

Analysis Of The Effect Of Financial Ratios On The Profit Sharing Rate Of Mudharabah Savings In Islamic Commercial Banks In Indonesia For The 2015-2020 Period

This study aims to analyze the effect of financial ratios consisting of the Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), BOPO and Financing of Deposit Ratio (FDR) on the profit-sharing rate of mudharabah savings at Islamic Commercial Banks in Indonesia for the 2015-2020 period. The population in this study is all Sharia Commercial Banks registered with the Financial Services Authority (OJK) in 2015-2020. The sample was obtained from 11 Sharia Commercial Banks selected using the purposive sampling technique. This type of research is quantitative, using data analysis methods in the form of linear regression analysis of data. The results of this study show that CAR, BOPO, and FDR have no effect on the profit-sharing rate of mudharabah savings at Sharia Commercial Banks in Indonesia from to 2015-2020 period. Meanwhile, NPF affects the profit-sharing rate of mudharabah savings in Islamic Commercial Banks in Indonesia during the 2015-2020 period.

The Effect Characteristics Board of Directors on The Financial Performance of Sharia Commercial Banks in Indonesia

Islamic commercial banks in Indonesia have not yet been included in the list of the top Islamic banks in the world with the potential for the largest Muslim population in the world which should be able to make their Islamic commercial banks enter the world's top Islamic banks. The average ROA of Islamic commercial banks is mostly below the ROA standard set by Bank Indonesia (1.5%). This research was conducted at Islamic commercial banks registered with OJK in 2011-2021 and uses secondary data sourced from annual reports. Analysis of this research data using E-Views software viaRandom Effects Model. The results of the analysis prove that board size, BOPO and NPF have a negative effect on ROA. The age of the chairman of the board and the education of the chairman of the board have a positive effect on ROA. The proportion of female boards, FDR, GDP, inflation and remuneration have no effect on ROA, so that the macroeconomic indicators: GDP and inflation have no effect on ROA of Islamic Commercial Banks.

The Embodiment of Corporate Social Accountability in Sharia Enterprise Theory

The issue of disclosure of social responsibility by entities is a theme that has always been debated. This is none other than because the implementation of social responsibility disclosures carried out by companies to date still shows a real impact. It is only natural that stakeholders still question its reality. Answering the doubts of these stakeholders, the company's social responsibility began to become a concern. As proof of the accountability activities that have been carried out, this research is here to explore corporate social responsibility accountability based on the Shariah Interprise Theory (SET) index. Using the research objects of Islamic commercial banks in Indonesia, this research examines the annual reports published by 8 Sharia commercial banks in Indonesia as a source of data. With descriptive qualitative methods through conten analysis as an analysis knife to answer the formulation of the problem, namely how the level of disclosure of social responsibility that has been carried out using the shariah enterprise theory index. The results of the study proved that 8 BUS in vertical accountability to Allah showed that it was in accordance with the components and criteria that had been set in the Shariah Enterprise Theory (SET) index, while accountability to customers, accountability to employees and accountability to nature as a whole in reporting did not fully meet the components Shariah Interprise Theory (SET). Especially in accountability to nature, it is still far from the component of Shariah Interprise Theory (SET).

Analisis Komparatif Kinerja Keuangan Bank Umum Konvensional dan Bank Umum Syariah di Indonesia dengan Metode RGEC

This study aims to analyse and compare the financial performance of Conventional Commercial Banks as the Holding Company of Banks and Sharia Commercial Banks in Indonesia in 2016 – 2020 uses the RGEC method. The Risk Profile aspect uses the ratio of NPL, NPF, LDR, FDR. The Good Corporate Governance aspect uses the GCG composite rating. The Earnings aspect uses the ratio of ROA, ROE, BOPO. The Capital aspect uses the CAR ratio. This study uses a different test using the Independent Sample T-test and the Mann Whitney test. The output of this research is there is no difference in the NPL and NPF ratio. The ratio of LDR and FDR shows that there is a difference. There is no difference in performance on the GCG composite rating. In the aspect of earnings, ROA, ROE, and BOPO, it shows that there are differences in performance. The CAR ratio shows that there are differences in performance.

Pengaruh CASA, FDR, CAR, dan Inflasi terhadap ROA pada Bank Umum Syariah di Indonesia

Sharia Commercial Banks in Indonesia have the largest share of assets compared to Sharia Business Unit and Sharia Rural Bank. This shows that the level of trust of the Indonesian people is higher in Islamic Commercial Banks. This study aims to determine the effect of bank financial performance factors seen from financial ratios, including CASA, FDR, and CAR as well as macroeconomic variables, namely Inflation on ROA at Islamic Commercial Banks registered with the OJK. The type of data used is secondary data in the form of annual reports from the official website of each Islamic Commercial Bank and inflation from the BPS. The research method used is quantitative-descriptive with path analysis model through a data processing applications, namely WarpPLS 7.0. The results show that the CASA and CAR variables have a positive and significant effect on ROA. While the FDR and Inflation variables have no effect on ROA.

A Decade Asset Growth Analysis of Sharia Commercial Banks in Indonesia

A Decade Asset Growth Analysis of Sharia Commercial Banks in Indonesia

ANALISIS SHARIA GOVERNANCE & STRUKTUR MODAL TERHADAP TINGKAT KEPATUHAN SYARIAH BERDASARKAN STANDAR AAOIFI

This study aims to analyze the influence competency of SSB, SSB size, board of directors’ meetings, board tenure, audit committee, firm size, and leverage on the level of disclosure of sharia compliance based on AAOIFI standards in Indonesia and Malaysia for the period 2011-2020 using DPS disclosure based on AAOIFI Governance Standard No. 1 & 5. The population of this study were Sharia commercial banks in Indonesia and Malaysia using purposive sampling method. Data analysis was performed by panel data regression. The results showed that the variable competence of DPS, the number of DPS, and the board of Directors meeting a positive effect on sharia compliance. While the variable tenure of the board of Directors, audit Committee, firm size, and leverage does not affect sharia compliance

Impact Of The Maqasid Sharia Index Mediation On Financial And Governance Performance And Profitability Sharia Commercial Banks In Indonesia

This study aims to explore the impact of the influence of Maqashid Syariah as a moderating variable on the variables capital adequacy ratio, operational costs, non-performance finance, Sharia supervisory board, and independent board of commissioners in influencing the profitability of Islamic banks in Indonesia. using panel data regression analysis, which is a combination of time series and cross-sectional data. The sample consists of 11 Islamic commercial banks with a time series from 2015 to 2020. The factors in the study are based on previous empirical literature. The findings show that the variables that have been moderated by Maqashid Shariah, such as the capital adequacy ratio and the Sharia supervisory board, are more significant than the variables of operational costs, non-performance finance, and the independent board of commissioners in influencing the profitability of Indonesian Sharia banking. The results of the study show that profitability growth, as measured by the moderation of the Islamic Maqashid variable on the capital adequacy ratio and the Sharia supervisory board, is a significant determinant of profitability, which implies that most of the profitability of Islamic banking in Indonesia is motivated by the capital adequacy ratio and the Sharia supervisory board, which is statistically significant. The coefficients of the capital adequacy ratio and Sharia supervisory board measures imply that these variables have a positive effect on the profitability of Islamic banking in Indonesia. The increase in profitability of Islamic banking in Indonesia, as measured by the capital adequacy ratio and the Sharia supervisory board, has a positive effect on profitability; these findings indicate that the growth of factors such as operational costs, non-performance finance, and the independent board of commissioners in influencing profitability of Indonesian Sharia banking is not motivating.

The Influence of Independent Commissioners, Islamic Social Reporting, and Sharia Supervisory Board on Earning Management with Firm Size as a Moderating Variable in Sharia Commercial Banks in Indonesia

This study aims to determine whether independent commissioners, Islamic social reporting and sharia supervisory boards affect earnings management. This study also aims to determine whether firm size can moderate the relationship between independent commissioners, Islamic social reporting, and sharia supervisory boards on earnings management. The population used in this study are Islamic Commercial Banks registered with the OJK from 2013-2021. The sample selection was carried out using the purposive sampling method. The number of samples in this study was 14 Islamic Commercial Banks, so a total of 126 research observations could be obtained. Data processing was carried out using the EViews version 10 program. The results showed that: (1) Independent commissioners partially have no effect on earnings management, (2) Islamic social reporting partially influences earnings management, (3) Sharia supervisory board partially influences earnings management, (4) Firm size partially moderates the relationship between independent commissioners, Islamic social reporting, and sharia supervisory boards. Keywords: Independent Commissioner, Islamic Social Reporting, Sharia Supervisory Board, Firm size, Profit Management.

The Impact of Deferred Tax and Tax-to-Book Ratio on Financial Performance of the Sharia Commercial Banks in Indonesia

Measuring financial performance by analyzing factors affecting profit is an important component of financial management. The role of profit in Sharia banking is not only limited to determining good or bad financial performance but also determines how much tax must be paid by bank to the state. Taxes for the government are a source of income but for Sharia bank a tax expenditure is a cost that will reduce the profit account in the income statement. This study aims to determine the effect of deferred tax and tax-to-book ratio on financial performance of the Sharia Commercial Banks in Indonesia. 10 Sharia Commercial Banks represented the sample in this study and were purposefully selected based on consideration of the following criteria: a) bank has published annual financial reports for the 2014-2020 period; b) bank has the recognition of deferred tax expenses and benefits and has an explanation of taxation in the notes to the financial statements; c) bank reported the value of net income and total assets by publishing the audited financial statements. The panel data used for the analysis covers the period 2014-2020. Before testing the model, the assumption tests performed were the normality test, multicollinearity test, and heteroscedasticity test. The data analysis technique uses panel data regression analysis with the selected model – Fixed Effect Model with the Hausman test approach. The results of this study show that the deferred tax variable has a negative and significant effect on financial performance (ROA). In contrast, the tax-to-book ratio does not influence financial performance. This situation is caused by the Sharia Commercial Banks in Indonesia experiencing the burden of deferred tax. In addition, due to the amount of deferred tax expense that Sharia Commercial Banks must issue, this will reduce net profit. As a result, the banks' financial performance decreases as measured by return on assets. Thus, management of the Sharia commercial banks in Indonesia should consider that the imposition of tax payable has implications for reducing financial performance.

Determinants of Financial Performance with Islamic Financial Technology Moderation in Sharia Commercial Banks in Indonesia

The research aims to examine and analyze the determinants of financial performance with the moderation of Islamic financial technology in Islamic commercial banks in Indonesia. The type of research used is classified as quantitative with an explanatory approach. The data used in this study is a type of secondary data. The population and sample in this study are six Islamic commercial banks registered with the Indonesian Financial Services Authority (OJK). Data management and analysis techniques were carried out by inferential analysis and Partial Least squares (PLS). The results of the Direct Effect Research show that: 1) firm size has a negative and significant effect on Financial Performance in Islamic commercial banks in Indonesia. 2) the current and debt-to-equity ratios have a negative and insignificant effect on Financial Performance in Islamic commercial banks in Indonesia. 3) Moderation of Islamic Fintech significantly strengthens the influence of Firm Size on Financial Performance in Islamic commercial banks in Indonesia. 4) Moderation of Islamic Fintech significantly strengthens the influence of the Current Ratio on the Financial Performance of Islamic commercial banks in Indonesia. 5) Moderation of Islamic Fintech significantly strengthens the influence of the debt-to-equity ratio on the Financial Performance of Islamic commercial banks in Indonesia. This study concludes that: 1) firm size with many total assets does not necessarily mean the company has a significant profit. It could decrease company profitability if these assets are not utilized and managed properly and efficiently. Companies with significant assets can utilize and support business development operations to maximize profits and increase company profitability. 3) The high current ratio indicates excess current assets, affecting the company’s profitability. The reason is that a high current ratio is only sometimes good because it will show excess current assets that are not used effectively, which can lead to a smaller level of profit or profitability, resulting in lower profitability. 3) a high debt-to-equity ratio indicates the availability of significant funds from the use of debt for company operations to increase the profitability of Islamic banks. Banks that finance their assets with debt cause their profitability to decrease because banks have to pay the costs that must be incurred due to the use of debt. 4) With Islamic fintech as a moderator between firm size, current ratio, and debt to equity ratio, Islamic fintech can optimize financial performance because by adopting fintech in Islamic banking among the public, it is easier to transact online because Islamic Fintech provides various services such as payment zakat, health, and lending as well as transfers between banks.

Analisis Determinan Fungsi Intermediasi dan Profitabilitas Bank Umum Syariah di Indonesia

This study aims to identify and analyze the direct effect of third party funds (DPK), capital adequacy (CAR), and problem finance (NPF) on the intermediation function (FDR) of sharia commercial banks in indonesia. The sampling technique used is purposive sampling, the number of samples obtained from all Islamic commercial banks in Indonesia for the period January 2013-February 2021. The data were analyzed by path analysis using the PLS method assisted by the SPSS program. The results showed that Third-Party Funds (TPF), Capital Adequacy Ratio (CAR), and Non-Performing Financing (NPF) had a significant direct negative effect on the intermediation function (FDR). Furthermore, for the profitability variable, the results of the study show that the Capital Adequacy Ratio (CAR) and Non Performing Financing (NPF) directly have a significant negative effect on Profitability (ROA). However, Third-Party Funds and Intermediation Functions have no direct significant effect on profitability. For the mediator variable, the results show that the intermediation function has not been able to mediate the independent variables of Third-Party Funds (TPF), Capital Adequacy Ratio (CAR), and Non Performing Financing (NPF) on Profitability (ROA).

Performance Assessment of Sharia Commercial Banks in Indonesia based on Sharia Maqashid Index (Case Study on Three Selected Banks 2015-2021)

This purpose of this study was to determine the performance of selected Islamic commercial banks in Indonesia using the Maqashid Syariah Index. The type of data used is secondary data obtained from the financial statements of each sample of Islamic commercial banks, namely Bank Muamalat, BCA Syariah, and BJB Syariah during the 2015-2021 periods. This research is a descriptive quantitative research using descriptive statistical analysis and the Simple Additive Weighting method. The results of this study are that BCA Syariah has the highest sharia maqashid index measurement results (39,56%) when compared to Bank Muamalat (38,40%) and BJB Syariah (35,58%). From the calculation results, there are no Islamic commercial banks that can consistently achieve high scores on each performance ratio assessment.

Analisis Perbandingan Rasio Profitabilitas dan Non Performing Loan (NPL) pada Kinerja Keuangan Bank Umum Konvensional dan Bank Umum Syariah

This study aims to analyze the comparison of financial performance between conventional commercial banks and sharia commercial banks in Indonesia. This research is a type of descriptive research with a quantitative approach. The population taken in this study are commercial banks registered with the Otoritas Jasa Keuangan (OJK). Sampling in this study was conducted using purposive sampling technique so that a sample of 11 conventional commercial banks and 9 sharia commercial banks was obtained. The data used is secondary data obtained from the published annual reports of each commercial bank registered with the Otoritas Jasa Keuangan (OJK) during the 2016-2020 period. The data in this study consists of financial ratios Return On Assets (ROA), Return On Equity (ROE), Net Interest Margin/Net Operating Margin (NIM/NOM), Operating Costs to Operating Income (BOPO), and Non-Performing Loans/Non-Performing Financing (NPL/NPF). In this study, data analysis was carried out using descriptive statistical analysis and the two-sample independent test of non-parametric statistics, namely the Mann Whitney test. After analyzing the data, the results show that there are differences in the financial performance of conventional commercial banks and sharia commercial banks as measured by the ratio of ROA, ROE, NIM/NOM, BOPO and NPL/NPF. In general, the financial performance of conventional commercial banks is better than that of Islamic commercial banks.

Determinants of Total Assets of Sharia Commercial Banks in Indonesia

The purpose of this study is to analyze the factors that affect the total assets of Islamic commercial banks in Indonesia. This research data is time series data from January 2015 to September 2021 in the form of monthly results and processed using multiple linear regression. The results of this study indicate that the variables NPF, FDR, Number of Offices, Number of Workers, Inflation and Exchange Rate together affect the variable Total Assets of Islamic Commercial Banks

ANALISIS HUBUNGAN KINERJA KEUANGAN (ROA, NPF, FDR) TERHADAP CORPORATE SOCIAL RESPONSIBILITY PADA BANK UMUM SYARIAH DI INDONESIA

Abstract: This study is about the relationship of financial performance that include of three indicators, there is ROA, NPF and FDR to Corporate Social Responsibility (CSR) in Sharia Commercial Banks in Indonesia. The purpose of this study is to look how the financial condition of a company can have an impact on the company's social activities, and look how much influence the three financial performance indicators have on CSR. This study uses secondary data with multiple regression analysis and uses the Ordinary Least Square (OLS) method, the data in this study are form financial reports and CSR activities of companys starting from 2012 to 2017, with samples taken are 6 banks out of a total of 13 Sharia Commercial Bank in Indonesia where the six banks have passed the criteria determined by the researcher. Data processed by SPSS version 18.0 and Microsoft Excel 2007. Tests in this study were carried out simultaneously (together) and partially (individually). The test results obtained are financial performance indicators (ROA, NPF, FDR) simultaneously have a significant effect on CSR. Then partially the ROA and NPF variables have no significant effect on CSR, while the FDR variable results are stated to have a significant effect on CSR. This study suggests that people can see the financial condition of a company by looking at its social activities, because both of these things are closely related. Companies with good financial conditions will enable the company to create a good social activities, and vice versa. And for companies in determining the CSR funds to be channeled, the level of ROA and NPF of the company is not the main determinant, meaning that there are other factors beside ROA and NPF variables that become the company's reference in determining the amount of CSR funds to be distributed.Keywords: Corporate Social Responsibility (CSR), Financial Performance, Return on Asset (ROA), Non Performing Financing (NPF), Financing to Deposit Ratio (FDR)

Analisis Perbandingan Rasio Profitabilitas dan Non Performing Loan (NPL) pada Kinerja Keuangan Bank Umum Konvensional dan Bank Umum Syariah

This study aims to analyze the comparison of financial performance between conventional commercial banks and sharia commercial banks in Indonesia. This research is a type of descriptive research with a quantitative approach. The population taken in this study are commercial banks registered with the Otoritas Jasa Keuangan (OJK). Sampling in this study was conducted using purposive sampling technique so that a sample of 11 conventional commercial banks and 9 sharia commercial banks was obtained. The data used is secondary data obtained from the published annual reports of each commercial bank registered with the Otoritas Jasa Keuangan (OJK) during the 2016-2020 period. The data in this study consists of financial ratios Return On Assets (ROA), Return On Equity (ROE), Net Interest Margin/Net Operating Margin (NIM/NOM), Operating Costs to Operating Income (BOPO), and Non-Performing Loans/Non-Performing Financing (NPL/NPF). In this study, data analysis was carried out using descriptive statistical analysis and the two-sample independent test of non-parametric statistics, namely the Mann Whitney test. After analyzing the data, the results show that there are differences in the financial performance of conventional commercial banks and sharia commercial banks as measured by the ratio of ROA, ROE, NIM/NOM, BOPO and NPL/NPF. In general, the financial performance of conventional commercial banks is better than that of Islamic commercial banks.

Determinants and Alternative Strategies in Improving The Financial Performance of Sharia Commercial Banks in Indonesia

This study is to examine the impact of internal and external factors on the profitability of Islamic commercial banks and to provide suitable solutions for enhancing their financial performance. This study utilizes original data collected from Islamic banking specialists that have experience, professionalism and a proven track record, as well as are true experts in their disciplines. Secondary data are gathered from the Financial Services Authority's (OJK) annual report on the financial performance of Islamic banks in Indonesia for the period 2013-2020 and 2013-2020 macroeconomic data. Using qualitative descriptive, panel data regression, and Analytical Hierarchy Analysis (AHP), the data were evaluated. The results of the study indicate that Bank Muamalat is the bank with the worst performance, whereas BTPN Syariah is regarded as the most outstanding since it is the sharia bank with the best performance. Only BOPO and FDR have a substantial impact on the profitability of Islamic Commercial Banks (ROA), with BOPO having a negative impact and FDR having a favorable impact. Inflation and the BI Rate have no substantial impact on profitability as external factors. As the primary approach, Sharia commercial banks must improve services and develop business segmentation based on risk tolerance. Trust and capital are the most crucial aspects in the success of this strategy. Directors as top-level managers play a crucial role in setting the direction of business policies and objectives, whereas employees play a part in the successful implementation of strategies. The ultimate objective of this strategy is to enhance consumer confidence and maximize profitability. Keywords: analytical hierarchy process (AHP), financial performance, financial service authority (OJK), islamic banking and profitability