The effect of macroeconomic factors and market share on the sharia banking industry in Indonesia

To increase performance of Islamic Banking Finance in Indonesia, it needed assessment of its financial performance which was rated from its profitability level with ROA as an indicator. This caused economic conditions that can influence bank performance and the factors are inflation, gross domestic product (GDP), third-party funds (TPF), and market share. Aim: This research aims to find out the influence of inflation, gross domestic product (GDP), third-party funds (TPF) and market share on the Islamic banking industry in Indonesia from 2011-2015. Method: The method of this research is quantitative approach. Moreover, it uses inflation, gross domestic product (GDP), third party funds (TPF), and market share approach on the return on assets (ROA) of the sharia banking industry in Indonesia. Results: The results show negative correlation by 95% of inflation, gross domestic product (GDP) and third-party funds (TPF) to return on asset (ROA) of the islamic banking industry. Simultaneously, variables of this research have had a significant influence to return on asset (ROA) in the Islamic banking industry in Indonesia with the coefficient of determination of 84.4%. Particularly, the variables of third-party funds and market share have significantly influenced return on asset (ROA) to the Islamic banking industry in Indonesia. Conclusion: From this study, it is concluded that inflation, gross domestic product (GDP), third party funds (TPF), and market share simultaneously significantly affect the return on assets (ROA) of the sharia banking industry in Indonesia.