Determination of Internal and External Factors of Sharia Banking In Turkey, Malaysia and Indonesia on The Business Risk And Profitability In 2013 – 2020

Alamsurya Kubara Endriharto, Sri Hermuningsih, Gendro Wiyono

Abstract


The purpose of this study is to compare the performance of Islamic banking in Turkey, Malaysia and Indonesia which consists of CAR, FAR, FDR, BOPO, Company Size, Inflation, Interest Rates, Exchange Rate, GDP, Asset Growth Rate, Business Risk, ROA. The sample in this study used purposive sampling and obtained a sample of 5 Islamic banks in Turkey, Malaysia, Indonesia. The data used is secondary data in the form of quarterly reports or financial reports through the official website of each Islamic bank. Researchers processed the data obtained based on purposive sampling using the annual reports of Islamic banking in Indonesia, Malaysia and Turkey in 2013-2020. The results show that BOPO on Business Risk is not significant in Turkey and Malaysia, but significant in Indonesia. CAR, FAR, and Exchange Rate against Business Risk are not significant in Turkey, Malaysia and Indonesia. FDR on Business Risk is not significant in Turkey and Indonesia, but significant in Malaysia. GDP, Interest Rate, Firm Size, Inflation, Asset Growth Rate to Business Risk are not significant in Malaysia and Indonesia, but significant in Turkey. BOPO to ROA is not significant in Turkey and Indonesia, but significant in Malaysia. CAR FAR Inflation Exchange Rate Asset Growth Interest rates on ROA are not significant in Turkey, Malaysia and Indonesia. GDP to ROA is not significant in Malaysia and Indonesia, but significant in Turkey. Firm size on ROA is not significant in Malaysia and Indonesia, but significant in Turkey. CAR FAR FDR to Asset Growth Rate is not significant in Turkey, Malaysia and Indonesia. Firm Size to Asset Growth Rate is not significant in Turkey, Malaysia and Indonesia. BOPO, Inflation, Exchange Rate, GDP to Asset Growth are not significant in Turkey and Malaysia, but significant in Indonesia.

Keywords


Bank Performance; Islamic Banks; Bank Comparison; Business Risk; ROA

Full Text:

PDF

References


Law No. 21 of 2008.

Abdullah, A. (2015). Quantitative Research Methodology For Management Economics, Communication and other Social Sciences. Aswaja Pressindo.

Ahmadi, N. (2016). Economic Research Methodology. In FebiPress. FebiPress.

Ainul, FNA, Susyanti, J., & Mardani, RM (2017). Effect of Premiums, Claims, Underwriting Results, Investments and Profitability on Asset Growth in Islamic Life Insurance Companies in Indonesia. In Scientific Journal of Management Research (Vol. 6, Issue 02).

Arifin, Zaenal. (2021). Understanding GRDP as an Instrument for Measuring Economic Growth in the Regions. https://www.bps.go.id/subject/169/produk-domestik-bruto--pengeluaran-.html

Arifin, Zainal. (2016). Exchange Rate and Rupiah Sovereignty. SOSIO-E-KONS Journal, Vol. 8 No. April 1, 2016, 8.

Asandimitra, N., & Rahayu, FD (2014). The Effect of Firm Size, Leverage, Profitability, Dividend Policy and Cash Holding on Firm Value in the Manufacturing Sector. Journal of Management Science.

Asiyah, BN (2014). Islamic Bank Financing Management. In Terrace.

Astohar. (2016). Effect of Capital Adequacy Ratio (CAR) and Financing to Deposit Ratio on Profitability of Islamic Banking in Indonesia with Inflation as Moderating Variable. Among Makati, 9(18), 38–56.

Central Bureau of Statistics. (2021). Definition of National Income. April, 1–7.

Bank Bukopin Syariah. (2021). Sharia System. https://www.syariahbukopin.co.id/id/syariah/sistem-syariah

Bank Indonesia Regulation Number: 6/21/PBI/2004, 1 (2004).

Regarding the Minimum Capital Adequacy Requirement for Commercial Banks Based on Sharia Principles no. 7/13/PBI/2005, (2005).

Bank Indonesia. (2021). Inflation. Bank Indonesia. https://www.bi.go.id/id/function-utama/moneter/inflasi/Default.aspx

Bank Indonesia Regulation Number 9/9/PBI/2007, (2007).

Bank Muamalat Cilegon. (2016). Basic Concepts of Islamic Economics. https://www.bankmuamalahcilegon.com/2016/04/concept-dasar-ekonomi-syariah.html

Malaysian State Bank. (2016). Ringgit: Islamic Banking. Bank Negara Malaysia And FOMCA. https://www.bnm.gov.my/documents/20124///059dfdcc-1b7b-0611-3aa8-793c069d1e60

Belkhaoui, S., Alsagr, N., & van Hemmen, SF (2020). Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries. Cogent Economics and Finance, 8(1). https://doi.org/10.1080/23322039.2020.1750258

Boediono. (2014). Monetary Economics. In Synopsis Series Introduction to Economics No. 5. PBPEE-Yogyakarta.

Bringham, & Houston, JF (2018). Bringham, Houston, JF Salemba Empat.

Chabachib, M., Windriya, A., Robiyanto, R., & Hersugondo, H. (2019). A comparative study of Indonesian and Malaysian Islamic banks. Banks and Bank Systems, 14(4), 55–68. https://doi.org/10.21511/bbs.14(4).2019.06

Daily Sabah. (2021). Turkey's Islamic finance assets to double in 5 years: Moody's.

Darmawi, H. (nd). Banking management. cet. 3.

David, W. (2017). Financial Management 1 Based on IFRS. Gava Media.

Efendy, F., & Fathoni, S. (2019). The Influence of Bank Performance Ratios on Industrial Profitability of Islamic Commercial Banks in Indonesia. Scientific Journal of Islamic Economics, 5(3), 217. https://doi.org/10.29040/jiei.v5i3.655

Ekanda, M. (2014). International Economics. Erlangga.

Franzlay, ASD (2016). Capital Adequacy Ratio (CAR), Non Performing Financing (NPF), Operational Efficiency (BOPO) and Financing to Deposit Ratio (FDR) on Profitability of Islamic Commercial Banks in Indonesia. Journal of Office Administration Vol.4 No.2, December 2016.

Ghozali, I. (2014a). Partial Least Squares Concepts, Techniques and Applications Using the SmarPLS 3.0 Program for Empirical Research.

GÖNCÜOĞLU;, M., & KARAAHMETOĞLU, M. (2014). ISLAMIC FINANCE AND TURKISH CAPITAL MARKETS. 9–12. https://tkbb.org.tr/Documents/Yonetmelikler/MahmutK._MustafaG._islamic_finance_system_and_Turkish_capital_markets.pdf

Hanania, L. (2015). "Long Factor". Internal and External Affecting Profitability of Islamic Banking in the Short and Long Term. Journal of Perbanas Vol 1 No. November 1, 2015.

Harmoni. (2014). Financial management. In Bumi Aksara (Vol. 7, Issue 2). Earth Ak.

Hasyim, AI (2016). Macro economics. date.

Henseler, J., Hubona, G., & Ray, PA (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management and Data Systems, 116(1), 2–20. https://doi.org/10.1108/IMDS-09-2015-0382

Hermuningsih, S., Rahmawati, AD, & Mujino, M. (2018). Factors Affecting Stock Returns. In Journal of Economics and Business (Vol. 19, Issue 3, pp. 13.39-56). https://doi.org/10.30659/ekobis.19.3.78-89

Ibrahim, M. (2020). Islamic Banking and Bank Performance in Malaysia: an Empirical Analysis. Journal of Islamic Monetary Economics and Finance, 6(3), 487–502. https://doi.org/10.21098/jimf.v6i3.1197

Indonesian Bankers Association (IBI). (2013). Understanding Bank Business. PT Gramedia Pustaka Utama.

Codification of Bank Indonesia Regulations on Institutional Assessment of Bank Soundness Levels, (2012).

Indonesia, IB (2014). Understanding Islamic Banking Business. In Gramedia Pustaka Utama (Vol. 1).

Islamic Corporation for the Development of the Private Sector. (2020). PROGRESSING THROUGH ADVERSITY. https://icd-ps.org/uploads/files/ICD-Refinitiv IFDI Report 20201607502893_2100.pdf

Islamic Development Bank. (2021). Backgrounds and Challenges. https://www.isdb.org/case-studies/enhancing-waqf-assets-and-islamic-banking-in-turkey

Ishmael. (2014). Syariah banking. In None (Vol. 12, Issue 02). KENCANA PRENADA MEDIA GROUP, Jakarta.

Karapınar, A., & agri Dogan, . (2015). An Analysis on the Performance of the Participation Banks in Turkey. Accounting and Finance Research, 4(2), 24-33. https://doi.org/10.5430/afr.v4n2p24

Karim, AA (2015). Macro economics. Press Eagle.

Karim, AA (2017). Islamic macroeconomics. Press Eagle.

Kasmi. (2014). Banks and Other Financial Institutions (p. 114). Press Eagle.

cashmere. (2013a). Financial Statement Analysis, First Printing. Raja Grafindo Persada.

Ministry of Religion of the Republic of Indonesia. (2013). Islamic Banking Pocket Book. Ministry of Religion.

Ministry of Communication and Informatics RI. (2020). Take advantage of Islamic Economics and Finance Potential to Accelerate Economic Recovery. https://www.kominfo.go.id/content/detail/30453/use-potential-economy-dan-keuangan-syariah-for-percepat-pemulihan-ekonomi-nasional/0/berita

Khaerul Umam. (2013). Sharia Banking Management (Issue No. 9/24/DPbS). Faithful Library.

Khan, MM (2019). Islamic Banking and Finance: Shariah Governance in Theory and Practice. Journal of Management Research, 11(2), 1. https://doi.org/10.5296/jmr.v11i2.14141

Litriani, LE (2016). The Effect of NPF, Fdr, Bopo on Return on Assets (Roa) in Islamic Commercial Banks. I-Economics, 2(1), 31–49.

Maheasy, N., & Harjanti, RS (2016). Analysis of Capital Adequacy Ratio, Financing to Deposit Ratio, Non Performing Financing, and Third Party Funds on Profitability Levels of Islamic Commercial Banks for the 2011-2013 Period. National Seminar on Applied Science and Technology, 1(1), 134–143.

Mankiw, NG (2013). Introduction to Macroeconomics. Salemba Four.

Marhanum Che Mohd Salleh, YAS (2019). Financial Performance of Islamic and Conventional Banks in Malaysia: A Comparative Analysis. International Journal of Management and Applied Research.

Mauludi, A. (2015). Techniques for Understanding Islamic Banking Accounting. Alim's Publishing.

Mohamad, MTAA, & Hamimah, Khairul; Muslim, N. (2019). The Determinants of Bank Profitability: How Malaysian Islamic Banks Response to the Financing Risk. Advances in Social Sciences Research Journal, 6(12), 1–15. https://doi.org/10.14738/assrj.612.7471

Mudrajad, K. (2015). Easy to Understand and Analyze Economic Indicators. UPP STIM YKPN.

Muhammad. (2014). Islamic Bank Fund Management. Press Eagle.

Muhammad. (2013). Islamic Accounting Theory and Practice for Islamic Banking. YKPN College of Management Science.

Muhardi R, W. (2013). Analysis of Projected Financial Statements and Stock Valuation. Salemba four.

Nawaz, Huma; Bardai, B. (2017). PROFITABILITY OF ISLAMIC BANKS: CASE OF MALAYSIA Journal of Islamic Banking and Finance. Journal of Islamic Banking and Finance.

Prasetyorini, B. fitri. (2013). Effect of Firm Size, Leverage, Price Earning Ratio and Profitability on Firm Value. Udayana University Management E-Journal.

Purnama, D. (2017). Effect of Profitability, Leverage, Firm Size, Institutional Ownership and Managerial Ownership on Earnings Management. In Journal of Financial Research and Accounting (Vol. 3, Issue 1). https://doi.org/10.25134/jrka.v3i1.676

Remy, SS (2014). Islamic Banking Products and Legal Aspects. Prenadamedia Group.

Sayım, F. (2017). The Role of Participation Banking as Alternative Financing Channels to Substitute for Deposit Banks and its Growth in the Turkish Finance Market - Period: 2007-2015 Ferhat. EMAJ: Emerging Markets Journal, 7(1), 1–16. https://doi.org/10.5195/emaj.2016.92

Siregar, PA, Supitriyani, S., Parinduri, L., Astuti, A., Azwar, K., & ... (2021). Banks and Other Financial Institutions. King Grafindo Persada. https://books.google.com/books?hl=en&lr=&id=nu0UEAAAQBAJ&oi=fnd&pg=PA157&dq=management+keuangan&ots=8DmR40-8vI&sig=vCutKbFk1grzvfLp8V7m21E3XC0

Siregar, S. (2013). Quantitative Research Methods Equipped with Manual Calculations & SPSS. date.

Siregar, S. (2014). Parametric Statistics for Quantitative Research Equipped with Manual Calculations and SPSS Application Version 17. PT Bumi Aksara.

Siregar, S. (2017). Islaminomic: "Profit Sharing Financing, FDR, NPF and Their Influence on Profitability of Islamic Commercial Banks." In Vol.7 No. 2.

Sukmana, R., & Febriyati, NA (2016). Islamic banks vs conventional banks in Indonesia: An analysis on financial performances. Journal of Management, 47, 81–90. https://doi.org/10.17576/pengurusan-2016-47-07

Circular No. 9/24/DPbS Regarding the Rating System for Commercial Banks Based on Sharia Principles, Appendix 1c.

Suwikyo, D. (2016). Analysis of Islamic Banking Financial Statements. Student Library.

Syaichfuddin, L.A; Rosyidi, S. (2017). Influence of Macroeconomic Factors, Third Party Funds and Financing Share on Profitability of the Islamic Banking Industry in Indonesia in 2011-2015. Journal of Islamic and Applied Economics, 4(12).

The Asian Banker. (2021). The Strongest Banks Rankings. 1–6. https://www.theasianbanker.com/ab500/2018-2019/strongest-islamic-banks.

Umam, : Khotibul. (2016). : Islamic Banking Fundamentals of Developmental Dynamics in Indonesia. In Rajawali Press. Press Eagle.

Law No. 10 years. (1998). Law of the Republic of Indonesia No. 10 of 1998 concerning Banking. State Gazette of the Republic of Indonesia, 182. http://www.bphn.go.id/data/documents/98uu010.pdf

WahanaComputer. (2017). Easy to Master SPSS. Andi's CV.

Wardhani, RA, & Muid, D. (2017). The Influence of Tax Aggressiveness, Company Size and Profitability on Corporate Social Responsibility (pp. 6, 1–10). Diponegoro Journal of Accounting.

Wibowo, WA, Soebroto, NW, & Soemarso, ED (2019). Analysis of the Effect of Capital Adequacy Ratio (Car), Loan To Deposit Ratio (Ldr), And Operating Costs Compared to Operating Income (Bopo) on Return on Assets (Roa) at Islamic Commercial Banks in Indonesia for the 2015-2017 Period. Keunis, 7(2), 78. https://doi.org/10.32497/keunis.v7i2.1587

Wijaya, T. (2013). Economics and Business Research Methodology. GRAHA SCIENCE.

Willy, A., & Jogiyanto. (2015). Partial Least Square (PLS) Alternative Structural Equation Modeling (SEM) in Business Research. Ed. ANDI.

Wiyono, G. (2020). Designing Business Research with SPSS 25 & SmartPLS 3.2.8 Analysis Tools. STIM YKPN.




DOI: https://doi.org/10.18196/jbti.v13i1.14737

Refbacks

  • There are currently no refbacks.


JBTI : Jurnal Bisnis : Teori dan Implementasi terindex:
 
 

Lihat Statistik Jurnal View MyStat

 
Office:
Magister of Managemet Postgraduate Building 2nd Floor UMY
Jl. Brawijaya, Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta, Indonesia
Phone: +62 274 387 656 Ext. 133
WA : +62 815-8758-702
E-mail: jbti@umy.university


This work is licensed under Attribution-NonCommercial-NoDerivatives 4.0 International