Macro and micro determinants of the non-performing finance: The case of Indonesian Islamic bank
Doubtful finance showing a bad performance of a company, but this can be avoided if the banks use the right strategy to prevent such financial condition. This study aims to indicate the determinants of doubtful finance in the Indonesian Islamic banking sector from 2011 to 2018. We employed panel da...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Center for Islamic Economics Studies and Development
2020-01-01
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| Series: | Jurnal Ekonomi dan Keuangan Islam |
| Online Access: | https://jurnal.uii.ac.id/JEKI/article/view/14061 |
| _version_ | 1811308953752043520 |
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| author | Anggia Zainur Rahmah Sheema Haseena Armina |
| author_facet | Anggia Zainur Rahmah Sheema Haseena Armina |
| author_sort | Anggia Zainur Rahmah |
| collection | DOAJ |
| description |
Doubtful finance showing a bad performance of a company, but this can be avoided if the banks use the right strategy to prevent such financial condition. This study aims to indicate the determinants of doubtful finance in the Indonesian Islamic banking sector from 2011 to 2018. We employed panel data regression to meet our objectives. Our results depict that banks’ profitability and finance to deposit ratio have a significant positive impact on Non-Performing Finance. On the other hand, Gross Domestic Product has a significant positive effect on doubtful finance. This study provides an alluded picture of Indonesian Islamic banking sectors, particularly Non-Performing Finance (NPF). Moreover, it enables policymakers to deliberate on the macroeconomic determinants of NPFs (i.e. GDP). Furthermore, this study will enhance the Islamic bank's performance literature.
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| first_indexed | 2024-04-13T09:32:40Z |
| format | Article |
| id | doaj.art-ca1b2e86bc4241449751103026de5726 |
| institution | Directory Open Access Journal |
| issn | 2088-9968 2614-6908 |
| language | English |
| last_indexed | 2024-04-13T09:32:40Z |
| publishDate | 2020-01-01 |
| publisher | Center for Islamic Economics Studies and Development |
| record_format | Article |
| series | Jurnal Ekonomi dan Keuangan Islam |
| spelling | doaj.art-ca1b2e86bc4241449751103026de57262022-12-22T02:52:11ZengCenter for Islamic Economics Studies and DevelopmentJurnal Ekonomi dan Keuangan Islam2088-99682614-69082020-01-016110.20885/JEKI.vol6.iss1.art4Macro and micro determinants of the non-performing finance: The case of Indonesian Islamic bankAnggia Zainur Rahmah0Sheema Haseena Armina1Faculty of Economics and Bussiness, Universitas Airlangga, Surabaya, IndonesiaFaculty of Economics and Bussiness, Universitas Airlangga, Surabaya, Indonesia Doubtful finance showing a bad performance of a company, but this can be avoided if the banks use the right strategy to prevent such financial condition. This study aims to indicate the determinants of doubtful finance in the Indonesian Islamic banking sector from 2011 to 2018. We employed panel data regression to meet our objectives. Our results depict that banks’ profitability and finance to deposit ratio have a significant positive impact on Non-Performing Finance. On the other hand, Gross Domestic Product has a significant positive effect on doubtful finance. This study provides an alluded picture of Indonesian Islamic banking sectors, particularly Non-Performing Finance (NPF). Moreover, it enables policymakers to deliberate on the macroeconomic determinants of NPFs (i.e. GDP). Furthermore, this study will enhance the Islamic bank's performance literature. https://jurnal.uii.ac.id/JEKI/article/view/14061 |
| spellingShingle | Anggia Zainur Rahmah Sheema Haseena Armina Macro and micro determinants of the non-performing finance: The case of Indonesian Islamic bank Jurnal Ekonomi dan Keuangan Islam |
| title | Macro and micro determinants of the non-performing finance: The case of Indonesian Islamic bank |
| title_full | Macro and micro determinants of the non-performing finance: The case of Indonesian Islamic bank |
| title_fullStr | Macro and micro determinants of the non-performing finance: The case of Indonesian Islamic bank |
| title_full_unstemmed | Macro and micro determinants of the non-performing finance: The case of Indonesian Islamic bank |
| title_short | Macro and micro determinants of the non-performing finance: The case of Indonesian Islamic bank |
| title_sort | macro and micro determinants of the non performing finance the case of indonesian islamic bank |
| url | https://jurnal.uii.ac.id/JEKI/article/view/14061 |
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