ISLAMIC BANK PREPARATION TOWARD GO PUBLIC
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Date
2012-01-25
Journal Title
Journal ISSN
Volume Title
Publisher
International Conference on Business, Entrepreneurship and Management 2012, San Beda College
Abstract
After years of stable growth, recovering from a severe economic crisis in 1997, the indonesian
economy was hit by the global economic downturn in 2008. The global financial crisis has
affected a number of banking institutions, including indonesian islamic banks. The crisis is
reflected by the higher financing to deposit ratio (fdr) in islamic bank. Actually,the high fdr has
positive impact to economic growth in the community. However, islamic banks have liquidity
problems if the clients want to pull their funds from the islamic bank. This study aims to
determine the effect of level of liquidity to the level of profitability in islamic banking(muama1at
indonesia bank, syariah mandiri bank and syariah mega indonesia bank) over the periods 2005-
2009. Results showed that the level of liquidity as measured by the quick ratio, financing to
deposit ratio and loan to asset ratio has a significant influence on return on equity. Interesting
funding showed that loan to asset ratio has a negative impact on return on equity.
Description
Keywords
Quick ratio, financing to deposit ratio, loan to asset ratio, return on equity, islarnic banking