Analysis of the Effect of Third Party Funds, Capital Adequacy Ratio, Non Performing Financing, Operational Expenses and Operational Income (BOPO) on the Profitability of Sharia Banks (Evidence from Indonesia)
Year: 2021
Type: conference-paper
Abstract: This study aims to study the effect of Third Party Funds, Capital Adequacy, Non-Performing Loans, Operational Expenses and Operating Income on the profitability of Islamic banks.The sample of this study was determined by purposive sampling and obtained 12 banking companies listed as Islamic commercial banks in the Financial Services Authority (2015)(2016)(2017)(2018).Data obtained from secondary data on banking company annual reports (2015)(2016)(2017)(2018).The results showed that capital adequacy and the comparison of operating expenses to operating income had a significant effect on profitability.Meanwhile, third party funds and non-performing loans have no effect on profitability.Simultaneously all independent variables have an effect on the dependent variable.Research indicates that Islamic banking requires additional capital while increasing the efficiency of its operational activities.
Institution: Binus University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W3210183247