TY - JOUR AU - Abidillah, Achmad Fadlil AU - Kasanah, Roisatun AU - Rusgianto, Sulistya PY - 2022/01/15 Y2 - 2024/03/28 TI - Macroeconomic’s effect on Islamic and conventional banking profitability: Evidence from Indonesian dual-banking system JF - Jurnal Ekonomi & Keuangan Islam JA - J. Eko. Keu. Isl. VL - 8 IS - 1 SE - Articles DO - 10.20885/jeki.vol8.iss1.art1 UR - https://journal.uii.ac.id/JEKI/article/view/21996 SP - 1-16 AB - <p><strong>Purpose</strong> – This paper aims to analyze the effect of macroeconomic and global crisis variables on Islamic and conventional banking profitability, evidence from Indonesian dual-banking system.</p><p><strong>Methodology</strong> – Time-series data from 2008q1–2021q2 were analyzed using an Autoregressive Distributed Lag (ARDL) model. This method can describe both long run and short run equilibrium between banking profitability and macroeconomic variables.</p><p><strong>Findings –</strong> The results point out that in a long run model, sharia banking's profitability is more resistant to macroeconomics shock than conventional's. Then, in a short run model, sharia's ROA and conventional's ROA face different effects of economic growth, exchange rate, and global crisis. Sharia's NPM is more affected by macroeconomic variables than conventional's.</p><p><strong>Originality –</strong> This study used an ARDL model to develop a dynamic relation between macroeconomic variables and dual bankings profitability.</p> ER -