Title: Macroeconomic And Bank Specific On Profitability: The Case Of Islamic Rural Bank In Indonesia
Authors:
- Shafira Nur Istiqomaha
- Puji Sucia Sukmaningrum
- Achsania Hendratmic
- Tika Widiastutid
Department: Ekonomi Islam
Journal Name: International Journal of Innovation, Creativity and Change
Kinds of Journal: Q3
Abstract:
The purpose of this study to investigate determinant Islamic Rural Bank’s (BPRS) profitability in Indonesia. Factors that can affect profitability are economic growth, inflation, deposits to total assets, NPF, liabilities to total assets, and profitability. This study uses a quantitative method with a multiple linear regression method. Data used is all gathered from the Islamic Rural Bank in Indonesia with the period of this study going from 2010-2017 quarterly. The results of this research were economic growth, deposits to total assets, NPF, and liabilities to total assets have partial significant effects on profitability. All independent variables have simultaneous effects on profitability with the value of R2 being 82.1%. BPRS are expected to improve their performance optimisations, especially in financing areas. Gathering third-party funds on BPRS are adequate enough but the distribution of financing is still not optimal due to the high level of congestion financing. The BPRS must be more cautious in conducting financing to produce an optical profit. In addition, BPRS are also expected to observe the macroeconomic state, especially economic growth and can take the opportunity to increase profitability. The existence of Islamic Rural Banks is very helpful for small entrepreneurs, with a straightforward process and this is also becoming a solution for the community. Islamic Rural Banks need to increase the performance to get greater profitability.
For details: https://ilkogretim-online.org/index.php/pub/article/view/3318/3236
