THE IMPACT OF BANK SPESIFIC CHARACTERISTICS TOWARDS INDONESIA’S ISLAMIC BANKING PROFITABILITY
STIE Sutaatmadja Subang, West Java
The aim of this study is investigating the determinant factors of Islamic banking industry’s profitability. The predictors of dependent variable were divided in six parts which were bank specific characteristic (BSC) indicators, such as Bank Size, Capital, Liquidity, Credit Risk, Operation Efficiency, and Financial Risk.
Multiple regression method was used as research methodology. The result shows that BSC indicators have significant impact in determining the profitability of Indonesia’s Islamic banking industry at 49,1% simultaneously.
Based on partial test, the three indicators of bank specific characteristics such as Bank Size, Capital, and Operation Efficiency were known to have significant impact in determining the variability of Profitability partially.
This result has ensured some previous discoveries of researchers which analyze the affecting of bank specific characteristic indicators upon Islamic Banking Profitability.
Topic: Financial Management and Accounting