Profit Growth in Indonesian Sharia Bank: the Impact of RGEC

  • Authors

    • Chairil Akhyar
    • Marzuki .
    • Azhar .
    • Ghazali Syamni
    2018-08-24
    https://doi.org/10.14419/ijet.v7i3.30.18437
  • Impact, RGEC, Risk, Sharia Banks
  • The purpose of this study aims to examine the impact of RGEC implementation on the growth of Sharia Banking profit in Indonesia. This study uses data of financial statements of 11 Sharia banking Indonesia during the year 2012-2014. This research uses panel regression model in testing RGEC factor on profit growth. Based on the data indicates that Sharia banking is still at risk, but GCG, ROA and CAR are still in a maintained position. Statistically this study found that NPF, CAR, inflation and Sharia banking activities affect the profitability of these banks. This indicates that Sharia banking has experienced risk and profitability problems. Economic problems inevitably affect Indonesian banks as it is seen that the level of profitability and inflation are not much different from each other.

     

     
  • References

    1. [1] Baselga-Pascual, L., Trujillo-Ponce, A., & Cardone-Riportella, C. (2015). Factors influencing bank risk in Europe: Evidence from the financial crisis. The North American Journal of Economics and Finance, 34, 138-166. doi: http://dx.doi.org/10.1016/j.najef.2015.08.004

      [2] Khediri, K. B., Charfeddine, L., & Youssef, S. B. (2015). Islamic versus conventional banks in the GCC countries: A comparative study using classification techniques. Research in International Business and Finance, 33(Supplement C), 75-98. doi: https://doi.org/10.1016/j.ribaf.2014.07.002

      [3] Imam, P., & Kpodar, K. (2016). Islamic banking: Good for growth? Economic Modelling, 59(Supplement C), 387-401. doi: https://doi.org/10.1016/j.econmod.2016.08.004

      [4] Karbhari, Y., Naser, K., & Shahin, Z. (2004). Problems and challenges facing the islamic banking system in the west: The case of the UK. Thunderbird International Business Review, 46(5), 521-543. doi: 10.1002/tie.20023

      [5] Bilal, M., & Amin, H. (2015). Financial Performance of Islamic and Conventional Banks During and After US Sub-prime Crisis in Pakistan: A Comparative Study. Global Journal Al-Thaqafah, 5(2), 73-87.

      [6] Alandejani, M., Kutan, A. M., & Samargandi, N. (2017). Do Islamic banks fail more than conventional banks? Journal of International Financial Markets, Institutions and Money. doi: https://doi.org/10.1016/j.intfin.2017.05.007

      [7] Alandejani, M., & Asutay, M. (2017). Nonperforming loans in the GCC banking sectors: Does the Islamic finance matter? Research in International Business and Finance, 42(Supplement C), 832-854. doi: https://doi.org/10.1016/j.ribaf.2017.07.020

      [8] Doumpos, M., Hasan, I., & Pasiouras, F. (2017). Bank overall financial strength: Islamic versus conventional banks. Economic Modelling, 64(Supplement C), 513-523. doi: https://doi.org/10.1016/j.econmod.2017.03.026

      [9] Zins, A., & Weill, L. (2017). Islamic banking and risk: The impact of Basel II. Economic Modelling, 64(Supplement C), 626-637. doi: https://doi.org/10.1016/j.econmod.2017.05.001

      [10] Ibrahim, M. H., & Rizvi, S. A. R. (2017). Do we need bigger Islamic banks? An assessment of bank stability. Journal of Multinational Financial Management, 40(Supplement C), 77-91. doi: https://doi.org/10.1016/j.mulfin.2017.05.002

      [11] Ahmed, S. U., Ullah, G. W., Ahmed, S. P., & Rahman, A. (2016). An Empirical Study on Corporate Governance and Islamic Bank Performance: A Case Study of Bangladesh. International Journal of Finance & Banking Studies, 5(4), 1.

      [12] Mollah, S., & Zaman, M. (2015). Shari’ah supervision, corporate governance and performance: Conventional vs. Islamic banks. Journal of Banking & Finance, 58(Supplement C), 418-435. doi: https://doi.org/10.1016/j.jbankfin.2015.04.030

      [13] Dietrich, A., & Wanzenried, G. (2011). Determinants of bank profitability before and during the crisis: Evidence from Switzerland. Journal of International Financial Markets, Institutions and Money, 21(3), 307-327. doi: http://dx.doi.org/10.1016/j.intfin.2010.11.002

      [14] Ramlan, H., & Adnan, M. S. (2016). The Profitability of Islamic and Conventional Bank: Case Study in Malaysia. Procedia Economics and Finance, 35(Supplement C), 359-367. doi: https://doi.org/10.1016/S2212-5671(16)00044-7

      [15] Rashid, A., & Jabeen, S. (2016). Analyzing performance determinants: Conventional versus Islamic banks in Pakistan. Borsa Istanbul Review, 16(2), 92-107.

      [16] Bitar, M., Madiès, P., & Taramasco, O. (2017). What makes Islamic banks different? A multivariate approach. Economic Systems, 41(2), 215-235. doi: https://doi.org/10.1016/j.ecosys.2016.06.003

      [17] Hendrayana, P. W., & Yasa, G. W. (2015). Pengaruh Komponen RGEC Pada Perubahan Harga Saham Perusahaan Perbankan Di Bursa Efek Indonesia. E-Jurnal Akuntansi, 10(2), 554-569.

      [18] [18] Iskandar, B. A., & Laila, N. (2017). Pengaruh Komponen Risk-Based Bank Rating Terhadap Profitabilitas Bank Umum Syariah Di Indonesia (Periode 2011–2014). Jurnal Ekonomi Syariah Teori dan Terapan, 3(3), 173.

      [19] Ramadhan, A. A. Pengaruh Rasio Tngkat Kesehatan Bank Terhadap Pertumbuhan laba Bank umum Syariah di Indonesia. Jakarta: Fakultas Ekonomi dan Bisnis UIN Syarif Hidayatullah Jakarta.

      [20] Yusuf, M. (2017). Dampak indikator rasio keuangan terhadap profitabilitas Bank Umum Syariah di Indonesia. Jurnal Keuangan dan Perbankan, 13(2), 141-151.

      [21] Aprilia, U. N., Rahadian, D., & Firli, A. (2017). Pengaruh tingkat kesehatan perbankan terhadap pertumbuhan laba pada Bank Umum Swasta Nasional Devisa di Indonesia periode 2012-2015. eProceedings of Management, 4(3).

      [22] Utami, P. Y., & Amanah, L. (2016). Pengaruh variabel keuangan terhadap profitabilitas bank (studi empiris lembaga perbankan pada BEI. Jurnal Ilmu dan Riset Akuntansi, 5(4).

      [23] Agustina, V. U., Djaelani, A. Q., & Priyono, A. A. (2017). Pengaruh tingkat kesehatan finansial perusahaan terhadap pertumbuhan laba pada perbankan syariah di indonesia (Studi kasus pada Bank Umum Syariah di Indonesia Tahun 2012-2016). Jurnal Ilmiah Riset Manajemen, 6(02), 43-53.

  • Downloads

  • How to Cite

    Akhyar, C., ., M., ., A., & Syamni, G. (2018). Profit Growth in Indonesian Sharia Bank: the Impact of RGEC. International Journal of Engineering & Technology, 7(3.30), 587-591. https://doi.org/10.14419/ijet.v7i3.30.18437