The Effect Of Financial Ratios On Islamic Rural Bank Performance In Indonesia

Ch, Irwan (2017) The Effect Of Financial Ratios On Islamic Rural Bank Performance In Indonesia. International Journal of Scientific & Technology Research, 6 (8). pp. 384-390. ISSN 2277-8616

	Text The Effect Of Financial Ratios - Similiarty.pdf Download (4MB)
	Text The Effect Of Financial Ratios - Peer Review.pdf Download (949kB)

Abstract

This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), Operating Costs to Operating Income Ratio and Financing to Deposit Ratio (FDR) toward Return on Assets (ROA), either jointly or partially and also looking for the most dominant influencing factor. As for the object of the research are 47 Islamic Rural Banks in Indonesia with total assets of IDR 3,908 billion or 50,5% of total assets of Islamic Rural Banks in Indonesia that is IDR.7,739 billion. The analysis was done by regression with the result of independent variable of Non Performing Financing (NPF) and Operating Cost to Operating Income Ratio, partially, have a significant and negative effect toward Return On Assets. However, Capital Adequacy Ratio (CAR) and Financing to Deposit Ratio (FDR ) are slightly influential and have insignificant effect toward Return on Assets (ROA) of Islamic Rural Banks in Indonesia partially, while jointly, have positive and significant influence toward Return On Assets. The most dominant Independent Variables which affect Return on Assets (ROA) partially is Operating Costs to Operating Income Ratio, and then followed by NonPerforming Financing (NPF).

Actions (login required)

View Item