loading
Papers Papers/2022 Papers Papers/2022

Research.Publish.Connect.

Paper

Paper Unlock

Authors: Cupian Cupian and Riki Relaksana

Affiliation: Department of Economics, Faculty of Economic and Business Universitas Padjadjaran and Indonesia, Indonesia

Keyword(s): Bank characteristics, Islamic banks, Indonesia, profitability.

Abstract: Recently, Islamic Banks in Indonesia are going to become more challenging. Due to this situation, it is important for these banks to strengthen their business performance in order to face with the strong competition among banks. The performance of these banks can be measured through profitability which is influenced by various factors. The internal determinants that resulted from bank management decision and policy may definitely affect the bank’s operating activities as well as its profitability. Therefore, this research is conducted to study the factors which determine profitability of Islamic banking institutions where special focus is given on bank-specific characteristics. The Least Square Dummy Variable (LSDV) panel data analysis. Five of eight independent variables, are significant in determining the profitability of Indonesian Islamic banks. The third party funds affect negatively profitability indicator. Overhead cost also influence banks’ profitability negatively that demon strates this variable contribute in reducing profitability. Meanwhile, total asset has positive relationship with profitability indicator indicates that banks of large size enjoy scale economy and achieve higher revenue. The interest-free earning assets affects profitability positively indicates that Islamic banks are keen to rely on this factor to enhance their profitability. Moreover, the positive impact of increased income from services activities on profitability reveals that Islamic banks so far has an important role in as sources of revenue. Interest free earning assets is the most important of bank characteristics that determines Indonesian Islamic banking’s performance. (More)

CC BY-NC-ND 4.0

Sign In Guest: Register as new SciTePress user now for free.

Sign In SciTePress user: please login.

PDF ImageMy Papers

You are not signed in, therefore limits apply to your IP address 34.229.172.86

In the current month:
Recent papers: 100 available of 100 total
2+ years older papers: 200 available of 200 total

Paper citation in several formats:
Cupian, C. and Relaksana, R. (2018). The Impact of Banks Characteristics Variables on Indonesian Islamic Banks Profitability. In 1st International Conference on Islamic Economics, Business, and Philanthropy - ICIEBP; ISBN 978-989-758-315-5; ISSN 2184-2736, SciTePress, pages 267-275. DOI: 10.5220/0007080602670275

@conference{iciebp18,
author={Cupian Cupian. and Riki Relaksana.},
title={The Impact of Banks Characteristics Variables on Indonesian Islamic Banks Profitability},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - ICIEBP},
year={2018},
pages={267-275},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007080602670275},
isbn={978-989-758-315-5},
issn={2184-2736},
}

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - ICIEBP
TI - The Impact of Banks Characteristics Variables on Indonesian Islamic Banks Profitability
SN - 978-989-758-315-5
IS - 2184-2736
AU - Cupian, C.
AU - Relaksana, R.
PY - 2018
SP - 267
EP - 275
DO - 10.5220/0007080602670275
PB - SciTePress