THE INFLUENCE OF SHARIA BANKING CHARACTERISTICS AND MACROECONOMICS FACTORS ON SHARIA BANKING PROFITABILITY: EMPIRICAL STUDIES IN INDONESIA

Abstract

This research aims to examine the influence of sharia banking characteristics (CAR, FDR, BOPO and NPF) and macroeconomics factors (inflation and GDP) on sharia banking profitability (return on asset/ROA). The data was obtained from the Financial Services Authority (OJK) publication report by purposive sampling technique in 12 sharia commercial banks. Then, data were analysed by multiple linear analysis. The results indicate that variables of BOPO, NPF and GDP significantly influence the ROA, but FDR, CAR and inflation have no significant influence on ROA. The prediction ability of 6 independent variables to the dependent variable is 65,6%, while 44,4% is influenced by other variables not mentioned in this research.