The impact of macro economy toward profitability of Islamic bank

Purpose: The aim of this study was to examine the impact of macro economy variables such as inflation, interest rate, and exchange rate toward the profitability of Islamic bank. Methodology: The research used quantitative approach through purposive sampling by using secondary data in the form of m...

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Main Authors: Yunice Karina Tumewang, Rindang Nuri Isnaini, Jannatul Liutammima Musta’in
Format: Article
Language:English
Published: P3EI-Center for Islamic Economics Studies and Development 2020-06-01
Series:Asian Journal of Islamic Management
Subjects:
Online Access:http://journal.uii.ac.id/AJIM/article/view/15419
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author Yunice Karina Tumewang
Rindang Nuri Isnaini
Jannatul Liutammima Musta’in
author_facet Yunice Karina Tumewang
Rindang Nuri Isnaini
Jannatul Liutammima Musta’in
author_sort Yunice Karina Tumewang
collection DOAJ
description Purpose: The aim of this study was to examine the impact of macro economy variables such as inflation, interest rate, and exchange rate toward the profitability of Islamic bank. Methodology: The research used quantitative approach through purposive sampling by using secondary data in the form of monthly time series from January 2015 to December 2012. Findings: The result shows that the inflation rate does not affect the bank income. The interest rate influences bank management in determining the level of margins and profit sharing so that partners continue to use Islamic bank products. In addition, the exchange rate does not have significant effect on the income of Islamic banks. Originality: As far as we are concerned, there are only few publications examining the effect of macro economy variable toward profitability of Islamic bank, particularly in the largest Muslim country during the period of December 2012-January 2015.
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spelling doaj.art-4b55d98af526461a98c784f2c4b0531a2022-12-22T01:35:01ZengP3EI-Center for Islamic Economics Studies and DevelopmentAsian Journal of Islamic Management2746-00372722-23302020-06-011210.20885/ajim.vol1.iss2.art49645The impact of macro economy toward profitability of Islamic bankYunice Karina Tumewang0Rindang Nuri Isnaini1Jannatul Liutammima Musta’in2Department of Accounting, Faculty of Business and Economics, Universitas Islam Indonesia, Yogyakarta, IndonesiaDepartment of Economics, Faculty of Business and Economics, Universitas Islam Indonesia, Yogyakarta, IndonesiaDepartment of Economics, Faculty of Economics and Business, Universitas Ahmad Dahlan, Yogyakarta, Indonesia Purpose: The aim of this study was to examine the impact of macro economy variables such as inflation, interest rate, and exchange rate toward the profitability of Islamic bank. Methodology: The research used quantitative approach through purposive sampling by using secondary data in the form of monthly time series from January 2015 to December 2012. Findings: The result shows that the inflation rate does not affect the bank income. The interest rate influences bank management in determining the level of margins and profit sharing so that partners continue to use Islamic bank products. In addition, the exchange rate does not have significant effect on the income of Islamic banks. Originality: As far as we are concerned, there are only few publications examining the effect of macro economy variable toward profitability of Islamic bank, particularly in the largest Muslim country during the period of December 2012-January 2015. http://journal.uii.ac.id/AJIM/article/view/15419macro economyprofitabilityIslamic bank
spellingShingle Yunice Karina Tumewang
Rindang Nuri Isnaini
Jannatul Liutammima Musta’in
The impact of macro economy toward profitability of Islamic bank
Asian Journal of Islamic Management
macro economy
profitability
Islamic bank
title The impact of macro economy toward profitability of Islamic bank
title_full The impact of macro economy toward profitability of Islamic bank
title_fullStr The impact of macro economy toward profitability of Islamic bank
title_full_unstemmed The impact of macro economy toward profitability of Islamic bank
title_short The impact of macro economy toward profitability of Islamic bank
title_sort impact of macro economy toward profitability of islamic bank
topic macro economy
profitability
Islamic bank
url http://journal.uii.ac.id/AJIM/article/view/15419
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