The Determinant of Islamic Bank Profitability and Stability in Indonesia Periods 2010-2017
- https://doi.org/10.2991/aebmr.k.210831.004How to use a DOI?
- Capital, Credit Risk, Islamic Banking, Inflation, Liquidity, Profitability, GDP, Stability
Indonesia is the largest Muslim population globally, but literacy of Islamic finance and banking is still limited, which impacts the development of sharia banking in Indonesia, including literature on Profitability and Stabil-ity in Islamic Banking. The aim of this study was to determine the profitability and stability of 34 Islamic banks in Indonesia for the period 2010-2017. This study analyzes the factors that affect Islamic banking’s profitability and stability using panel data regression with fixed effect techniques. The results showed that Is-lamic banks’ profitability is determined by capital, credit risk, operational efficiency, liquidity risk, asset size, stability, GDP, and inflation. The results showed that Islamic banks’ profitability is determined by capital, credit risk, operational efficiency, liquidity risk, asset size, stability, GDP, and inflation. The results of Islamic banking stability found that profitability and credit risk impact bank stability, while the Asset Size, liquidity, Operating Effectiveness, inflation, and GDP do not affect the Islamic banks’ stability. These findings are sig-nificant for the growth and development of Islamic banks in Indonesia
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Dedi Supiyadi PY - 2021 DA - 2021/09/02 TI - The Determinant of Islamic Bank Profitability and Stability in Indonesia Periods 2010-2017 BT - Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020) PB - Atlantis Press SP - 16 EP - 21 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.210831.004 DO - https://doi.org/10.2991/aebmr.k.210831.004 ID - Supiyadi2021 ER -