scholarly journals Factors Affecting Distribution of Islamic Commercial Bank Financing in Indonesia Period 2014 to 2019

2021 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Shihabudin Shihabudin ◽  
Sanjoyo Sanjoyo ◽  
Yayan Hendayana
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Regression Coefficient ◽  
Capital Adequacy ◽  
Business Unit ◽  
Factors Affecting ◽  
Bank Financing ◽  
Capital Adequacy Ratio ◽  
Research Period

This research background was the decline of financing distribution ratio of Sharia Commercial Banks in Indonesia as seen from the data of the Financing to Deposit Ratio (FDR) during the period of 2014 to 2019. In 2014, the Sharia Commercial Banks FDR was recorded at 86.66%, it went down to 79.10% in 2019, meanwhile according to Bank Indonesia’s regulation in 2019, the intermediation ratio for all banks should be in the range of 84 to 94%.  Compared to Sharia Business Unit and Conventional Commercial Banks, Sharia Commercial Banks, during the research period, had a lower FDR. The low FDR of Sharia Commercial Bank showed that the role of intermediation was sub-optimal and that there was considerable room for finance expansion. Suspected factors affecting the distribution of financing of Sharia Commercial Banks in this researchwere limited to Capital Adequacy Ratio (CAR), Non Performing Financing (NPF), Bonus of Bank Indonesia Certificates Syariah (SBIS), and Inflation. The results showed that the CAR, NPF, SBIS, and Inflation variables altogether had a significant effect on Sharia Commercial Bank Financing. While partially, only NPF variable had a significant effect on Sharia Commercial Bank Financing, with a regression coefficient of -2458,047, meaning that each 1% increase in the NPF will reduce Sharia Commercial Bank Financing by 2,458,047 billion Rupiah. The research results implication is that one way to optimize Sharia Commercial Bank financing in Indonesia is to reduce the level of Non-Performing Financing (NPF) at those banks

scholarly journals Assessing the Impact of Bank Concentration and Liquidity of Refah Bank Branches on Profitability during the Period1383-190

2014 ◽  
Vol 4 (1) ◽  
pp. 248
Author(s):  
Hossin Ostadi ◽  
Nastran Monsef
Keyword(s):  
Commercial Banks ◽  
Bank Capital ◽  
Factors Affecting ◽  
Bank Branches ◽  
Independent Variables ◽  
Bank Deposits ◽  
The Impact ◽  
Bank Concentration ◽  
Research Period

Profitability is an important factor to show this articledoeswhat is the role of the intermediary bank to collect your savings and allocation of loans.  Given the importance of profitability indicators in this study, the factors affecting the profitability of commercial banks in Iranare analyzedwith emphasis on the degree of centralization and bank deposits. Dependent variable is indicators of profitability (ROE, ROA) and bank deposits, bank size, bank capital, focus on liquidity and banking requirements are independent variables. Correlation analysis and OLS regression are used and the research period is 1381 to 1390 that the country's territory where bank branches.Our results indicate that the effect of bank size on profitability is positive and the increase in bank size on profitability is increased. Impact on the profitability of bank deposits is positive, ie increasing the profitability of bank deposits increased. Finally, the impact of bank concentration on profitability is positive. Increasing the bank's focus profitability increases. Moreover, the results adversely affect the liquidity of the index is profit. 

scholarly journals Faktor - Faktor Yang Mempengaruhi Penyaluran Pembiayaan Perbankan Syariah Indonesia Periode 2009 - 2019

2019 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Warto Warto ◽  
R Bambang Budhijana
Keyword(s):  
Commercial Bank ◽  
Optimal Growth ◽  
Third Party ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Business Unit ◽  
Significance Level ◽  
Bank Financing ◽  
Analysis Technique ◽  
Research Period

Compared to conventional banking, the distribution of Islamic banking financing is more optimal, growth is continuous and asset enhancement is very good. This is indicated by the Financing to Deposit Ratio (FDR) which ranges between 94.88%. This means that a Sharia Bank is able to meet the targets and expectations of Bank Indonesia. Given the lack of Islamic banks and their limited assets, this optimization is certainly influenced by many factors, therefore it is necessary to test the factors that influence the distribution of Islamic banking financing, which includes Third Party Funds (DPK), Non Performing Financing (NPF) and Bank Indonesia Syariah Certificate (SBIS). This study uses the Sharia Commercial Bank and the Sharia Business Unit as a whole as a unit of research object, with the research period from 2009-2019 (in the quarterly period). The analysis technique used is multiple linear regression, while hypothesis testing uses the t-test to test the effect of variables partially, and the F-test to test the effect of variables simultaneously with a significance level of 5% or 0.05. Based on the research, it was found that Third Party Funds (TPF) had a positive and significant effect on the distribution of Islamic Banking financing. Non Performing Financing (NPF) has a positive and insignificant effect on the distribution of bank financing. While Sharia Bank Indonesia Certificates (SBIS) have a negative and significant effect on the distribution of bank financing.

scholarly journals Regulatory Capital is a Panacea for Efficiency, Credit Growth and Reducing Non-Performing Loans in Commercial Banks

2021 ◽  
Vol 16 (2) ◽  
pp. 265-287
Author(s):  
Amina Malik ◽  
◽  
Babar Zaheer Butt ◽  
Shahab Ud Din ◽  
Haroon Aziz ◽  
...  
Keyword(s):  
Commercial Banks ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Regulatory Capital ◽  
Credit Growth ◽  
Minimum Capital ◽  
Capital Adequacy Ratio ◽  
The Impact ◽  
Interest Margin

This study examined the effectiveness of regulatory capital in enhancing efficiency and credit growth and reducing bad loans in commercial banks listed on the Pakistan Stock Exchange (PSX) from 2010 to 2019. Precisely, the impact of capital adequacy ratio (CAR) was studied on net interest margin (NIM), credit growth (CR) and non-performing loans (NPLs). The impact of capital adequacy regulations was assessed by retrieving data from financial statements analysis (FSA), Bank Financial statements and the World Bank website. Panel regression models including ordinary least squares (OLS), fixed and random effects under robust title were applied in this study. Results revealed that the implementation of stringent CAR plays the role of panacea and increases interest margin & credit growth and a reduction of NPL in Pakistani commercial banks. The study provides practical results for regulators to customize regulations on credit growth to reduce non-performing loans and maintain healthy growth of loans by not compromising on interest margins as well as maintenance of minimum capital adequacy ratios. With the high significance of stringent minimum capital adequacy for banks, the findings of the study are valuable for regulators, banks, auditors and investors, as capital adequacy ratio commonly plays the role of Panacea in terms of efficiency, credit growth and reduction in non-performing loans. Keywords: capital adequacy ratio, efficiency, credit growth, non-performing loans

scholarly journals Capital Adequacy Ratio dan Beban Operasional Terhadap Profitabilitas Pada Bank Umum Syariah

2017 ◽  
Vol 1 (1) ◽  
pp. 26-34
Author(s):  
Resti Purwita Sari ◽  
Tupi Setyowati
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Operating Cost ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Operating Income ◽  
Capital Adequacy Ratio ◽  
Bibliographic Data ◽  
Data Source

This study aims to analyze and determine the effect of Capital Adequacy Ratio (CAR), Operating Cost Operating Income (BOPO) to Profitability proxyed using Return On Assets (ROA) at Sharia Commercial Bank in Indonesia period 2014-2015. This research uses data source secondary documentation of the annual financial statements of Sharia Commercial Banks in Indonesia and supplemented by other bibliographic data sources. The result of the research shows that Capital Adequacy Ratio (CAR) has negative and insignificant effect on Return On Asset (ROA) at Sharia Commercial Bank in Indonesia and Operating Cost Operating Income (BOPO) have negative and significant effect to Return On Asset (ROA) at Sharia Commercial Bank in Indonesia

scholarly journals FAKTOR PENENTU PROFITABILITAS BANK UMUM SYARIAH DI INDONESIA (Pasca Peralihan Tugas Pengawasan Perbankan dari BI ke OJK)

2018 ◽  
Vol 1 (1) ◽  
pp. 53
Author(s):  
Fitra Rizal
Keyword(s):  
Linear Regression ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Islamic Banking ◽  
Banking Supervision ◽  
Return On Assets ◽  
Analysis Technique ◽  
Capital Adequacy Ratio

Abstract: This research was conducted to determine the determinants of profitability on Sharia Commercial Bank after the transfer of banking supervision duties from Bank Indonesia to the Otoritas Jasa Keuangan. The data used in this research are secondary data obtained from Islamic Banking Statistics published by the Otoritas Jasa Keuangan and Bank Indonesia.The analysis technique used is multiple linear regression using the classic assumption test first.The results of the analysis show that the regression equation used has passed the classic assumption test. This research proves that partially, only the Operational Expenses to Operational Revenue variables that affect Return on Assets of Islamic Commercial Banks in Indonesia for the 2015-2018 Period,while the variable Capital Adequacy Ratio and Inflation did not affect Return on Assets of Sharia Commercial Banks in Indonesia for the 2015-2018 period. And simultaneously the three variables have an effect on Return on Assets of Islamic Commercial Banks in Indonesia for the 2015-2018 Period. الملخص: تم إجراء هذا البحث لتحديد محددات ربحية البنك الاسلامي التجاري بعد انتقال مهام الإشراف المصرفي من بنك إندونسيا إلى هيئة الخدمات المالية البيانات المستخدمة في هذه الدراسة هي بيانات ثانوية تم الحصول عليها من إحصاءات المصرفية الإسلامية التي نشرتها هيئة الخدمات المالية وبنك أندونيسيا. الطريقة التحليلية المستخدمة هي الانحدار الخطي المتعدد باستخدام اختبار الافتراض الكلاسيكي أولاً. توضح نتائج التحليل أن معادلة الانحدار المستخدمة اجتازت اختبار الافتراض الكلاسيكي. تثبت هذه الدراسة أن جزئية،المصروفات التشغيلية لمتغير الإيرادات التشغيلية التي تؤثر على العائد على موجودات البنوك التجارية الإسلامية في إندونيسيا للفترة 2015-2018 ، أن متغير نسبة كفاية رأس المال والتضخم لا يؤثر على العائد على الأصول البنوك الإسلامية في إندونيسيا فترة 2015-2018.في وقت واحد, المتغيرات الثلاثة العائد على الأصول تأثير المصارف الإسلامية في إندونيسيا فترة 2015-2018Abtrak: Penelitian ini dilakukan untuk mengetahui faktor penentu profitabilitas Bank Umum Syariah pasca peralihan tugas pengawasan perbankan dari Bank Indonesia ke Otoritas Jasa Keuangan. Data yang digunakan dalam penelitian ini adalah data sekunder yang diperoleh dari Statistik Perbankan Syariah yang dipublikasikan oleh Otoritas Jasa Keuangan dan Bank Indonesia. Teknik analisis yang digunakan adalah regresi linier berganda dengan menggunakan uji asumsi klasik terlebih dahulu. Hasil analisis menunjukkan bahwa persamaan regresi yang digunakan telah lolos uji asumsi klasik. Penelitian ini membuktikan bahwa secara parsial, hanya variabel Operational Expenses to Operational Revenue yang berpengaruh terhadap Return on Asset Bank Umum Syariah di Indonesia Periode 2015-2018, sementara variabel Capital Adequacy Ratio dan Inflasi tidak berpengaruh terhadap Return on Asset Bank Umum Syariah di Indonesia Periode 2015-2018. Dan secara simultan ketiga variabel tersebut Berpengaruh terhadap Return on Asset Bank Umum Syariah di Indonesia Periode 2015-2018.

scholarly journals Factors Affecting the Loan Loss Provision in Vietnamese System of Commercial Banks

2014 ◽  
Vol 222 ◽  
pp. 89-106
Author(s):  
Hiền Nguyễn Thị Thu ◽  
Tuấn Phạm Đình
Keyword(s):  
Commercial Banks ◽  
Financial Risk ◽  
Capital Adequacy ◽  
Loan Loss ◽  
Factors Affecting ◽  
Loan Loss Provision ◽  
Loan Loss Provisions ◽  
Capital Adequacy Ratio ◽  
Loan Risk ◽  
Theoretical Evidence

Establishing loan loss provisions may affect bank’s profitability and capital adequacy ratio. The paper employs regression analysis to explore operations of loan loss provisions in Vietnamese commercial banks in 2008-2012 in its relationship with bank characteristics. The results show that loan loss provisions of Vietnamese commercial banks are positively related to size and proportion of bad debt and negatively related to financial risk ratio. The paper provides theoretical evidence of the opportunism in selection of accounting policy concerning loan risk management by Vietnamese bank managers.

scholarly journals PENGARUH FAKTOR INTERNAL DAN EKSTERNAL TERHADAP PEMBIAYAAN BERMASALAH PADA BANK UMUM SYARIAH (BUS) DAN BANK PEMBIAYAAN RAKYAT SYARIAH (BPRS)

2019 ◽  
Vol 1 (3) ◽  
pp. 833
Author(s):  
Sherly Yolanda ◽  
Ariusni Ariusni
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Commercial Bank ◽  
Secondary Data ◽  
Least Square ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Monthly Data ◽  
Factors Affecting ◽  
Capital Adequacy Ratio

This study was conducted to examine the factors affecting Non Performing Financing (NPF) in Sharia Commercial Bank and Sharia Rural Bank in Indonesia such as: Capital Adequacy Ratio (CAR), Return On Assets (ROA), Inflation, and Exchange Rate. The data used are secondary data in the form of time series of monthly data from 2015 to 2018.The method used are: (1) Ordinanry Least Square (OLS), (2) Classical Assumption Test which is processed through Eviews 8.0 application. The results of the study show that (1) Capital Adequacy Ratio (CAR) has a negative and significant effect on Non Performing Finansial (NPF) on Sharia Commercial Bank and Sharia Rural Bank (2) Return On Assets (ROA) has a negative and  not significant effect on Non Performing Finansial (NPF) on Sharia Commercial Bank and on Sharia Rural Bank has a positive and significant effect. (3) inflation has a negatif and not significant effect on Sharia Commercial Bank and Sharia Rural Bank. (4) Exchange Rate has a negatif and not significant effect on Non Performing Finansial (NPF) on Sharia Commercial Bank and on Sharia Rural Bank has a positive and not significant effect

scholarly journals PENGARUH CAPITAL ADEQUACY RATIO, INFLASI, DAN GROSS DOMESTIC PRODUCT TERHADAP RETURN ON ASSETS (STUDI PADA BANK UMUM SYARIAH NON DEVISA DI INDONESIA PERIODE TAHUN 2018-2020)

2021 ◽  
Vol 1 (1) ◽  
pp. 110-122
Author(s):  
Lutfi Indriwati ◽  
Agung Eko Purwana
Keyword(s):  
Panel Data ◽  
Gross Domestic Product ◽  
Foreign Exchange ◽  
Commercial Banks ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Sample Number ◽  
Capital Adequacy Ratio ◽  
Research Period

This research examines the influence of CAR, inflation and GDP on ROA of Non-Foreign Exchange Sharia Commercial Banks in Indonesia. In the research period there were cases in the financial statements where CAR increased but ROA decreased, in addition when inflation decreased ROA also decreased and at the time of GDP rise ROA again decreased. The novelty of this research is a method of regression of panel data that has never been used in CAR, inflation and GDP together. This research is quantitative with a sample number of 4 Non-Foreign Exchange Sharia Commercial Banks. The findings in this study are that CAR, inflation and GDP have no partial effect on ROA. However, CAR, inflation, and GDP simultaneously affect ROA. The next research is expected to take variables other than CAR, inflation, and GDP that theoretically affect roa of Non-Foreign Exchange Sharia Commercial Banks in order to obtain a better roa model of Non-Foreign Exchange Sharia Commercial Banks compared to this study. Riset ini menguji pengaruh CAR, inflasi dan GDP terhadap ROA Bank Umum Syariah Non Devisa di Indonesia. Pada periode riset ditemui kasus pada laporan keuangan dimana CAR mengalami peningkatan namun ROA mengalami penurunan, selain itu ketika inflasi mengalami penurunan ROA turut mengalami penurunan serta pada saat GDP naik ROA kembali mengalami penurunan. Kebaruan dari riset ini berupa metode regresi data panel yang belum pernah digunakan pada CAR, inflasi dan GDP secara bersama. Riset ini berjenis kuantitatif dengan jumlah sampel 4 Bank Umum Syariah Non Devisa. Temuan pada riset ini adalah CAR, inflasi dan GDP secara parsial tidak berpengaruh pada ROA. Namun, CAR, inflasi, serta GDP secara simultan berpengaruh pada ROA. Riset berikutnya diharapkan dapat mengambil variabel lain selain CAR, inflasi, dan GDP yang secara teori berpengaruh pada ROA Bank Umum Syariah Non Devisa agar diperoleh model ROA Bank Umum Syariah Non Devisa yang lebih baik dibandingkan dengan penelitian ini.

scholarly journals Assessing Banks Internal and Macroeconomic Factors as Determinants of Non- Performing Loans: Evidence from Nepalese Commercial Banks

2018 ◽  
Vol 3 (1) ◽  
pp. 13-32
Author(s):  
Bishnu Prasad Bhattarai
Keyword(s):  
Commercial Banks ◽  
National Level ◽  
Least Square ◽  
Capital Adequacy ◽  
Economic Factors ◽  
Return On Assets ◽  
Macroeconomic Factors ◽  
Factors Affecting ◽  
Ordinary Least Square ◽  
Capital Adequacy Ratio

This study has attempted to ascertain the factors affecting to non-performing loans in Nepalese commercial banks using a sample of ten commercial banks for the period of 2013-2017 with 50 observations, a balanced set of panel data. The descriptive and causal comparative research designs have been adopted for the study. The dependent variable was non-performing loans, while independent variables included both bank specific factors; bank size, return on assets, total loan and advance to total deposit ratio, capital adequacy ratio and macro-economic factors; real gross domestic product growth rate and inflation. The existence of high levels of NPLs would hinder the benefits to the county through inefficient financial intermediation. Hence, there is a national level responsibility towards banks, to manage the NPL ratio at an acceptable level. Consequently, it is important to identify “what causes NPLs and significance of these factors on NPLs”. Therefore, this study would help to get an insight on the bank specific and macro-economic factors, which affect NPLs in commercial banks and in which magnitude bank specific or macroeconomic factors contribute to NPLs. The estimated ordinary least square (OLS) regression model reveals that the bank specific: ROA, LTD and CAR and macroeconomic factors GDP have significant impact on nonperforming loan in Nepalese commercial banks.

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