Open AccessModerating Effect of Inflation on the Influence of Financial Performance on the Growth of Islamic Banking in Indonesia
Author(s) -
Abid Djazuli,
Mister Candera
Publication year - 2021
Publication title -
international journal of finance research
Language(s) - English
Resource type - Journals
ISSN - 2746-136X
DOI - 10.47747/ijfr.v1i2.259
Subject(s) - capital adequacy ratio , return on assets , inflation (cosmology) , business , operating expense , financial system , financial ratio , islam , net interest margin , capital (architecture) , earnings before interest and taxes , islamic banking , margin (machine learning) , intermediation , finance , economics , profitability index , profit (economics) , philosophy , physics , theology , archaeology , machine learning , theoretical physics , computer science , history , microeconomics
Islamic banking is one of the financial institutions whose activities are financial intermediation between the owners of capital and those who need capital. This study was conducted to know and analyze the impact of inflation as a moderating influence of financial performance on the growth of Islamic banking in Indonesia. The financial performance used consists of return on assets (ROA), non-performing financing (NPF), net operating margin (NOM), capital adequacy ratio (CAR), financing to Deposit Ratio (FDR), and operating expenses for operating income (BOPO). The data used is secondary data, obtained from the results of financial reports published on the official website of the Otoritas Jasa Keuangan (OJK) from January 2015 to December 2019. The analysis results show that, in general, inflation cannot moderate the influence of financial performance on rbanking growth—Sharia in Indonesia. Inflation can only be a predictor of the effect of return On Assets and net operating margin on the growth of Islamic banking in Indonesia. Meanwhile, the variables of non-performing financing (NPF), capital adequacy ratio (CAR), financing to deposit ratio (FDR), and operating expenses for operating income (BOPO) are not able to be a moderator or as a predictor