THE EFFECT OF ISLAMIC PERFORMANCE INDEX ON FINANCIAL PERFORMANCE IN SYARIAH COMMERCIAL BANKS
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Solid State Technology Volume: 63 Issue: 4
Abstract
Currently, Indonesia is ranked 7th in the Islamic Finance Country Index (GIFR,
2017) after Malaysia, Iran, Saudi Arabia, United Arab Emirate and Kuwait. The Islamic
finance industry is spelled out in place when compared to these countries. In order for the
Islamic finance industry to continue to develop, financial performance must be good so that
the trust of stakeholders in the funds invested in Islamic banks is high. To create confidence
in the measurement of the performance of Islamic banks, it is necessary to measure in
accordance with the basis of Islamic values. The purpose of this study was to determine the
effect of the Islamic performance index consisting of profit sharing ratio, zakat performance
ratio, and Islamic income vs non-Islamic income on financial performance at Islamic
Commercial Banks. This research belongs to the type of explanatory research with
quantitative approaches. The population in this study are Islamic Commercial Banks listed on
the Indonesia Stock Exchange. The data analysis technique used is multiple linear regression.
Based on the research results, it is shown that the profit sharing ratio has an effect on return
on assets, while the zakat performance ratio has no effect on return on assets, while Islamic
vs non-Islamic income also has no effect on return on assets. The Islamic Performance Index
has an effect on returns on assets in Islamic Commercial Banks in 2015-2018.
Description
Keywords
Islamic Finance, Islamic Finance Country Index