Open AccessProfit Growth in Indonesian Sharia Bank: the Impact of RGEC
Author(s) -
Chairil Akhyar,
Marzuki Marzuki,
Azhar Azhar,
Ghazali Syamni
Publication year - 2018
Publication title -
international journal of engineering and technology
Language(s) - English
Resource type - Journals
ISSN - 2227-524X
DOI - 10.14419/ijet.v7i3.30.18437
Subject(s) - profitability index , sharia , indonesian , profit (economics) , panel data , business , islam , financial system , accounting , finance , economics , econometrics , philosophy , linguistics , theology , microeconomics
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.