Factors Influencing the Financial Performance of Islamic Rural Banks in Indonesia

Dedek Sri Wahyuni, Hamdi Agustin, Rahmat Setiawan, Hasby

2023

Abstract

The purpose of this research is to determine the factors that influence the performance of Islamic rural banks in Indonesia. The aim of this research is to identify the factors that impact the performance of Islamic rural banks in Indonesia. It is known that banks in developing countries are more vulnerable to external and massive threats. Therefore, it is very important to study their performance in the era before and during COVID-19. In this study, there were 163 companies in the population of BPRS. Because the data was incomplete and not available on the company’s website, the sample could not be taken from all populations. There are 74 datasets that meet the criteria for sampling because they have the most complete financial reports and have been published during the 2018-2021 period. The results of the study show that the dummy variable COVID-19 has no effect on the financial performance of Sharia Rural Banks. Covid-19 has not had an impact on BPRS performance due to the segmentation of BPRS consumers, mostly rural communities who earn income from agriculture, plantations, and trade. The income of BPRS consumers during the Covid-19 period was not affected by these efforts. Thus, Covid-19 will not have an impact on the financing that has been distributed by the BPRS. OCOI and SIZE variables affect financial performance. Meanwhile, the CAR, FDR, and NPF variables have no impact on the financial performance of Sharia Rural Banks.

Paper Citation

in Harvard Style

Sri Wahyuni D., Agustin H., Setiawan R. and Hasby. (2023). Factors Influencing the Financial Performance of Islamic Rural Banks in Indonesia. In Proceedings of the 2nd Maritime, Economics and Business International Conference - Volume 1: MEBIC; ISBN 978-989-758-704-7, SciTePress, pages 104-110. DOI: 10.5220/0012628700003798

in Bibtex Style

@conference{mebic23,
author={Dedek Sri Wahyuni and Hamdi Agustin and Rahmat Setiawan and Hasby},
title={Factors Influencing the Financial Performance of Islamic Rural Banks in Indonesia},
booktitle={Proceedings of the 2nd Maritime, Economics and Business International Conference - Volume 1: MEBIC},
year={2023},
pages={104-110},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012628700003798},
isbn={978-989-758-704-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Maritime, Economics and Business International Conference - Volume 1: MEBIC
TI - Factors Influencing the Financial Performance of Islamic Rural Banks in Indonesia
SN - 978-989-758-704-7
AU - Sri Wahyuni D.
AU - Agustin H.
AU - Setiawan R.
AU - Hasby.
PY - 2023
SP - 104
EP - 110
DO - 10.5220/0012628700003798
PB - SciTePress