Article Sidebar

Download
Full text PDF
Statistic
Read Counter : 302 Download : 328

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose – This research aims to investigate the main factors of Islamic banks’ profitability before and after the pandemic COVID-19 in Indonesia.
Methodology – The sample of this study is ten Islamic commercial banks that have complete data and are registered with Bank Indonesia. The data was analyzed by using a data panel regression estimation model based on the best estimation model which is the random effect model or REM.
Findings – Based on the result of the REM model, the study finds that both Islamic banks' internal variables such as NPF and OEF except CAR and FDR, and Islamic bank’s external variables such as the Covid-19 crisis variables are significant in determining Islamic banking profitability In Indonesia.
Implications – The present research has implications for Islamic bank management and policy-makers as well as researchers.
Originality – This study will become one of the pioneers to examine empirically determining the main factors of Islamic banks' profitability before and post-Covid-19 in Indonesia. The findings will contribute to minimizing the negative impact of economic crises like the Covid-19 outbreak in Indonesia.

Keywords

Islamic banks’ profitability capital adequacy financing risk liquidity ratio operational efficiency COVID-19 Indonesia

Article Details

License

Copyright (c) 2022 Ahmad Munawar, Sulaeman

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution ShareAlike License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

How to Cite
Ahmad Munawar, & Sulaeman. (2023). Determining the main factors of Islamic banks’ profitability in Indonesia: Does Covid-19 crisis play an important role?. Asian Journal of Islamic Management (AJIM), 4(2), 138–149. https://doi.org/10.20885/AJIM.vol4.iss2.art5
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Al-akhiri, Y. (2021). Pengaruh green bond dan green sukuk terhdap profitabilitas di kaji dalam perspektif Islam (Survey pada perusahaan yang terdaftar di bursa efek Indonesia tahun 2018-2019). (Thesis, UIN Raden Intan Lampung). http://repository.radenintan.ac.id/18275/1/PUSAT%20BAB%201%20DAN%202.pdf
  2. Anggraini, D., Aryani, D., & Prasetyo, I. B. (2020). Analisis implementasi green banking dan kinerja keuangan terhadap profitabilitas bank di Indonesia (2016-2019). Jurnal Bisnis, Manajemen dan Informatika), 17(2), 141–161. https://doi.org/10.26487/jbmi.v17i2.11264
  3. Anggraini, S., Fasa, M. I., Suharto, & Fachri, A. (2022). Analisis pengaruh green banking terhadap profitabilitas bank umum syariah Indonesia. Journal of Business Management and Islamic Banking, 1(1), 73–88. https://doi.org/10.14421/jbmib.2022.%25x
  4. Angraini, D. P., Sudarsono, H., & Anindita, S. F. (2020). The influence of financial performance and macroeconomic on financing risk in Islamic banks. Asian Journal of Islamic Management, 2(2), 138–152. https://doi.org/10.1108/AJIM.vol2.iss2.art6
  5. Anisa, S. T., & Anwar, S. (2021). Determinan profitabilitas bank umum syariah di Indonesia dengan tingkat likuiditas sebagai variabel intervening. Jurnal Perbankan Syariah, 2(2), 131–149. https://doi.org/10.46367/jps.v2i2.346
  6. Ascarya. (2020). The role of Islamic social finance in times of Covid-19 Outbreak. https://pebs-febui.org/en/download/materi-monthly-seminar-the-role-of-islamic-social-finance-in-times-of-covid-19-outbreak-4-april-2020/
  7. Ascarya, & Yumanita, D. (2011). Determinan dan persistensi margin perbankan konvensional dan syariah di Indonesia. Jurnal Ekonomi dan Bisnis Islami, 1(1), 1-34. https://www.researchgate.net/publication/316595441_determinan_dan_persistensi_margin_perbankan_konvensional_dan_Syariah_di_indonesia
  8. Dongoran, F. H. (2022). Determinan profitabilitas pada bank umum syariah (BUS) di Indonesia. (Thesis Fakultas Ekonomi dan Bisnis Islam, Institut Agama Islam Negeri Padangsidimpuan). http://etd.iain-padangsidimpuan.ac.id/7711/
  9. Gujarati, D. N., & Porter, D. C. (2012). Buku 1 dasar-dasar ekonometrika (5th ed.). Jakarta: Salemba Empat.
  10. Hasanah, N., & Hariyono, S. (2022). Analisis implementasi green financing dan kinerja keuangan terhadap profitabilitas perbankan umum di Indonesia. Jurnal Ekobis: Ekonomi, Bisnis, & Manajemen, 12(1), 149–157. https://doi.org/10.37932/j.e.v12i1.444
  11. Iman, N. F., & Umiyati. (2022). Analisis determinan atas profitabilitas bank Syariah di Indonesia. Jurnal Akuntansi dan Keuangan Islam, 10(April), 31–54. https://doi.org/10.35836/jakis.v10i1.280
  12. Imsar, & Harahap, M. I. (2022). Analisis determinan profitabilitas bank BUMN Syariah di Indonesia. JIBF Madina: Jurnal Islamic Banking and Finance, 2(I), 42–55. https://jurnal.stain-madina.ac.id/index.php/jibf/article/view/675/659
  13. Isayas, Y. N. (2022). Determinants of banks’ profitability: Empirical evidence from banks in Ethiopia. Cogent Economics & Finance, 10(2031433), 1–15. . https://doi.org/10.1080/23322039.2022.2031433
  14. Ken, G., & Santioso, L. (2022). Determinan profitabilitas perbankan yang terdaftar di BEI periode 2018-2020. Jurnal Ekonomi, 27(3), 358–378. https://doi.org/10.24912/je.v27i03.881
  15. Laili, Y., & Bawono, A. (2022). Determinan profitabilitas dengan pembiayaan bagi hasil sebagai variabel intervening pada bank umum syariah. Mandiri: Jurnal Akuntansi dan Keuangan, 1(2), 19–29. https://jurnal.risetilmiah.ac.id/index.php/jak/article/view/40
  16. Mondol, D. K., & Wadud, A. (2022). Determinants of profitability of commercial banking in Bangladesh: A panel analysis. International Journal of Statistical Sciences, 22(1), 115–143. https://scholar.google.com/citations?view_op=view_citation&hl=en&user=o1eVolsAAAAJ&cstart=20&pagesize=80&citation_for_view=o1eVolsAAAAJ:k8Z6L05lTy4C
  17. Pamuncak, M. B., & Wijaya, A. P. (2022). Investigating the determinants of shariah-compliant firms profitability in Indonesia: Does Covid-19 play an essential role ? AL-Muzara'ah, Special Issue, 31–41. https://doi.org/10.29244/jam.specialissue2022.31-41
  18. Pindyck, R. S., & Rubinfield, D. L. (1998). Econometric models and economic forecast (4th ed.). New York: McGraw Hill.
  19. Riani, R., & Ikhwan, I. (2022). The impact of Covid-19 on the banking industry efficiency: Comparison between Indonesia and Malaysian banks. Asian Journal of Islamic Management, 4(1), 43–58. https://doi.org/10.20885/ajim.vol4.iss1.art4
  20. Ristanto, S. (2021). Pengaruh pandemi Covid-19 terhadap kinerja bank Indonesia : Studi pada bank yang terdaftar di bursa efek Indonesia (Universitas Islam Indonesia). https://dspace.uii.ac.id/bitstream/handle/123456789/31448/18911116 Slamet Ristanto.pdf?sequence=1
  21. Sahli, P., & Kartika, A. D. (2022). Determinan profitabilitas pada bank umum konvensional. Jakarta Pusat. http://repository.stie-yai.ac.id/1116/1/Penelitian%20Purnawan%20Final.pdf
  22. Shinozaki, S. (2021). Covid-19 impact on micro , small , and medium- sized enterprises and post – crisis actions one-year after the outbreak in Indonesia Profile of MSMEs Surveyed. https://www.adb.org/sites/default/files/publication/677321/adbi-wp1216.pdf
  23. Sulaeman. (2021). Factors determining behavioral intentions to use Islamic crowdfunding platform in times of Covid-19 in Indonesia: Evidence from TAM approach. Jurnal Ekonomi & Keuangan Islam, 7(1), 31–44. https://doi.org/https://dx.doi.org/10.20885/JEKI. vol7.iss1.art3
  24. Sulaeman, S. (2020). A conceptual and empirical study on the development of the Islamic donation-based crowdfunding platform model for micro small and medium-sized enterprises (MSMEs) in times of Covid-19 pandemic in Indonesia. Asian Journal of Islamic Management (AJIM), 2(2), 107–122. https://doi.org/10.20885/ajim.vol2.iss2.art4
  25. Sullivan, V. S., & Widoatmodjo, S. (2021). Kinerja keuangan bank sebelum dan selama pandemi (Covid-19). Jurnal Manajerial dan Kewirausahaan, 3(1), 257. https://doi.org/10.24912/jmk.v3i1.11319
  26. Sutrisno. (2003). Manajemen keuangan. Teori konsep dan aplikasi. Yogyakarta: Ekonisia.
  27. Syahri, N. A., & Harjito, D. A. (2020). The effect of financing using the principle of profit-loss sharing on profitability level of commercial Islamic bank registered in Bank Indonesia. Asian Journal of Islamic Management (AJIM), 2(1), 46–58. https://doi.org/10.1108/AJIM.vol2.iss1.art5
  28. Syamsuddin, L. (2000). Manajemen keuangan perusahaan: Konsep aplikasi dalam perencanaan, pengawasan, dan pengambilan keputusan. Jakarta: PT Raja Grafindo Perkasa.
  29. Tiara, C., & Jayanti, D. (2022). Pengaruh green banking, firm age dan firm size terhadap nilai perusahaan. Jurnal Pendidikan Akuntansi dan Keuangan, 10(2), 230–239. https://doi.org/10.17509/jpak.v10i2.44526
  30. Tumewang, Y. K., Isnaini, R. N., & Musta’in, J. L. (2019). The impact of macro economy toward profitability of Islamic bank. Asian Journal of Islamic Management, 1(2), 101–108. https://doi.org/10.1108/AJIM.vol1.iss2.art4
  31. Wooldridge, J. M. (2001). Econometric analysis of cross section and panel data (2nd ed.). London: MIT Press.
  32. Wuryandani, D. (2020). Dampak pandemi Covid-19 terhadap pertumbuhan ekonomi Indonesia 2020 dan solusinya. Pusat Penelitian Badan Keahlian DPR RI, Bidang Ekonomi dan Kebijakan Publik, 12, 19-24. https://berkas.dpr.go.id/puslit/files/info_singkat/Info%20Singkat-XII-15-I-P3DI-Agustus-2020-206.pdf.