Performance analysis of sharia commercial banks in Indonesia before the covid pandemic period (2015-2019)

Erna Handayani, Alni Rahmawati, Naelati Tubastuvi and Ira Hapsari
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Erna Handayani: Universitas Muhammadiyah Purwokerto, Jl. KHA Dahlan 103 Purwokerto 53182, Indonesia
Alni Rahmawati: Universitas Muhammadiyah Yogyakarta, Tamantirto, Kasihan, Yogyakarta 55183, Indonesia
Naelati Tubastuvi: Universitas Muhammadiyah Purwokerto, Jl. KHA Dahlan 103 Purwokerto 53182, Indonesia
Ira Hapsari: Universitas Muhammadiyah Purwokerto, Jl. KHA Dahlan 103 Purwokerto 53182, Indonesia

International Journal of Research in Business and Social Science (2147-4478), 2021, vol. 10, issue 2, 228-237

Abstract: Overcoming the impact of the Covid pandemic on Islamic banking in Indonesia, management must take strategic steps based on predictions and previous performance identification. Identify performance, information on the factors that affect the performance of Islamic banking in Indonesia is needed. Several aspects that are considered to affect Islamic banking performance that management must consider are capital, liquidity aspects, credit risk, and efficiency. This research examines the influence of the aspects of capital (Capital Adequacy Ratio and Third Party Funds), liquidity (Finance to Debt Ratio ), credit risk (Non-Performing Financing).) and operational efficiency (BOPO) on the performance of Islamic banking in Indonesia 5 (five) years before the Covid pandemic occurred in Indonesia (2015-2019). The results showed that these five aspects had a simultaneous effect on Islamic banking performance in Indonesia, with a termination coefficient of 94.4%. Of the five variables, CAR, FDR, NPF, and BOPO significantly affect performance, while TPF has no significant effect on performance (Return on Assets). Key Words: Performance, Islamic Banking, Bank Health Ratio, Return on Asset, Capital Adequacy Ratio, Non Performing Financing, Third Party Funds

Date: 2021
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