Financing profitability optimization: case study on sharia business unit of regional development banks in Indonesia
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Author(s)JusniLink to ORCID Index: https://orcid.org/0000-0002-5368-3381
,
Andi AswanLink to ORCID Index: https://orcid.org/0000-0002-7893-591X
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Andi Reni Syamsuddin
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Bayu Taufiq PossumahLink to ORCID Index: https://orcid.org/0000-0001-5541-4890
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DOIhttp://dx.doi.org/10.21511/bbs.14(1).2019.01
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Article InfoVolume 14 2019, Issue #1, pp. 1-10
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276 Downloads
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Creative Commons Attribution 4.0 International License
The study aims to examine the financing profitability optimization as recorded by Sharia Business Unit of Regional Development Banks (RDBs) in Indonesia. The profitability measured by Net Operating Margin (NOM) and predicted variables were tested with the ratio of Operational Cost to Operational Income (BOPO), Non-Performing Financing (NPF) and Profit Sharing Financing (PSF). On the basis of the literature review conducted, the study proposed five path coefficients to impact NOM, of which the constructed direct path to NOM was three and two for indirect paths. Time series data used were obtained from annual reports and publication reports. Using Pearson Correlation and Path Analysis, the study has found that BOPO, PSF, and NPF contributed to impact to NOM directly, and PSF impacted NOM indirectly through BOPO. Interestingly, PSF recorded a negative impact on NOM, suggesting inefficiency matters faced by SBU of RDBs not contributed from PSF. Another interesting finding, NPF was found insignificant to BOPO, indicating loan default is not a major matter for inefficiency issue, but could be a tight financing policy.
- Keywords
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JEL Classification (Paper profile tab)G2, G21, G24
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References51
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Tables4
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Figures2
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- Figure 1. Proposed full path model for NOM
- Figure 2. A reduced full model of NOM through BOPO
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- Table 1. Descriptive statistic for main variables
- Table 2. Pearson correlation matrix for main variables
- Table 3. The structural path for equation 1 (BOPO)
- Table 4. The structural path for equation 2 (NOM)
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Ownership structure and bank performance
Hamdi Agustin , Sri Indrastuti , Amris Rusli Tanjung , Muhammad Said
doi: http://dx.doi.org/10.21511/bbs.13(1).2018.08
Banks and Bank Systems Volume 13, 2018 Issue #1 pp. 80-87 Views: 1906 Downloads: 508 TO CITE АНОТАЦІЯThe purpose of this study is to evaluate the performance of banks in Indonesia. Specifically, this study has examined the static effect of ownership structure on bank performance in Indonesia over the period 1995–2006. The sample consists of 74 banks, namely 56 private banks, 15 community development banks (BPD), and three federal banks from 1995 to 2006. The data was analyzed using least-squares regression method, the general least squares method, and the method of random effects. The findings of this study show that the BPD performed better compared to private banks. This indicates that BPDs have better performance rather than private banks which is due to the fact that customers can be able to pay loans, they have special knowledge on that area and the performance of BPD is supervised by local government. In addition, the amount of equity, economic growth, financial crisis, and the financial ratios affect the performance of the bank. However, bank status has no effect on bank performance.
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Sharia corporate governance and financial reporting timeliness: Evidence of the implementation of banking regulations in Indonesia
Zulfikar Zulfikar ,
Andy Dwi Bayu Bawono ,
Mujiyati Mujiyati ,
Sri Wahyuni 
doi: http://dx.doi.org/10.21511/bbs.15(4).2020.15
Banks and Bank Systems Volume 15, 2020 Issue #4 pp. 179-192 Views: 1084 Downloads: 376 TO CITE АНОТАЦІЯThis paper aims to study Islamic banking (IB) regulations related to the influence of the Sharia corporate governance (SCG) mechanism on financial reporting timeliness (FRTL) in Indonesia. The unbalanced panel data obtained empirically during a period that ranges from 2016 to 2019 includes observations from 54 Islamic commercial banks (ICb), 82 Sharia business unit (SBu) banks and 82 conventional banks (CB). Panel regression model is used in this study to adjust the unbalanced panel data obtained. The findings indicate that the variation of FRTL for IBs (represented by ICb) is determined by Sharia corporate governance (SCG) mechanisms. Further findings relate to a comparative study of variations in FRTL between ICb, SBu, and CBs. Although there are different determinants between ICb (SCG) and CBs (CG), there is no difference in FRTL variation between the two. Meanwhile, between ICb and SBu, whose regulations have the same determinant, there are differences between the two FRTL variations. The novelty of this paper is that, firstly, SCG is constructed on the basis of the IBs regulation to determine FRTL, and secondly, the variationі in FRTL between the IBs and CBs groups are compared.
