The effect of internal factors on the efficiency of ASEAN Sharia banking

Mediana Tri Wijayati, M. Suyunus

Research output: Contribution to journalArticlepeer-review

Abstract

This research aims to determine the effect of internal factors on the efficiency of ASEAN Islamic banks. The samples of this research are ASEAN Islamic banks which have listed and published their financial reports on each countries' central bank website for the period of 2012-2016. The independent variables in this research are Profitability (ROA), Bank Size (SIZE), Liquidity (LIQ), Credit Risk (RISK), and Operating Cost. The dependent variable is the banking efficiency measured by the ratio of input (total deposit, labour, and capital) and output (total loans and investments). The analytical method used is a quantitative approach with E-Views 9.0 Software. The results of this research indicate that the variables ROA, SIZE, and RISK have no effect on the efficiency of Islamic banking, whereas LIQ has a significant positive effect and Operating Cost has a significant negative effect on the efficiency of Islamic banking.

Original languageEnglish
Pages (from-to)76-92
Number of pages17
JournalInternational Journal of Innovation, Creativity and Change
Volume9
Issue number8
Publication statusPublished - 2019

Keywords

  • E-views
  • Efficiency
  • Liquidity
  • Operating cost
  • RISK
  • ROA
  • SIZE

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