Profitability Determinants of Islamic Private-Owned Banks and Conventional State-Owned Banks in Indonesia

Taufik, Taufik and Yuliani, Yuliani and Raneo, Agung Putra and Ghasarma, Reza and Adam, Mohamad Profitability Determinants of Islamic Private-Owned Banks and Conventional State-Owned Banks in Indonesia. International Journal of Innovation, Creativity and Change, 11 (2). pp. 432-450. ISSN 2201-1323

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Abstract

The aim of this research was to investigate the effect of profitability determinants i.e. capital ratio, loan, size, deposits and credit risk of Islamic private-owned banks and conventional state-owned banks in Indonesia from 2012 to 2017. The population was 11 Islamic private- owned banks and 6 conventional state-owned banks. Based on the criteria of purposive sampling technique, a total sample of 12 banks was obtained (6 Islamic private-owned banks and 6 conventional state- owned banks). A multiple regression analysis was applied. The findings indicated that capital ratio, size, deposits and credit risk did not affect profitability of Islamic private-owned banks but loan positively did. The results also proved that capital ratio, deposits and credit risk did not affect profitability of conventional state-owned banks but size positively did. All profitability determinants of the two kinds of banks had no mean difference except credit risk. Due to the limitations of this research, it is recommended for further research to add other related variables of profitability determinants.

Item Type:	Article
Subjects:	H Social Sciences > HG Finance > HG1501-3550 Banking
Depositing User:	Agung Putra Raneo
Date Deposited:	14 Jun 2023 14:57
Last Modified:	14 Jun 2023 14:57
URI:	http://repository.unsri.ac.id/id/eprint/110079

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