Open AccessImpact of Credit Risk, Distribution of Interest Rate, and Liquidity on Bank Profitability
Author(s) -
Sinta Purnama Sari
Publication year - 2022
Publication title -
li falah
Language(s) - English
Resource type - Journals
eISSN - 2549-6085
pISSN - 2541-6545
DOI - 10.31332/lifalah.v6i2.1945
Subject(s) - profitability index , nonprobability sampling , market liquidity , credit risk , business , liquidity risk , islam , sample (material) , financial system , population , interest rate , economics , finance , geography , chemistry , demography , archaeology , chromatography , sociology
Developing Islamic finance in Indonesia is needed to strengthen a sustainable economic structure. This issue is based on the promising potential of Islamic economic and financial development. This study examines the impact of credit risk, the spread of interest rates, and liquidity on bank profitability. The population in this study is Islamic banking companies in Indonesia during the 2014-2018 period. The sample was chosen from the purposive sampling method and obtained a sample of 50 companies from several criteria. This research uses multiple linear regression analysis with the help of SPSS version 21. This research shows that credit risk and liquidity affect bank profitability. At the same time, the spread of interest rates does not affect banks' profitability.