Proceedings of the 1st Conference on Islamic Finance and Technology, CIFET, 21 September, Sidoarjo, East Java, Indonesia

Research Article

Sharia Banking Profitability and Liquidity towards Economic Growth in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.21-9-2019.2293936,
        author={Acep R. Jayaprawira and Roikhan Mochamad Aziz and Dita Nur Amanda},
        title={Sharia Banking Profitability and Liquidity towards Economic Growth in Indonesia},
        proceedings={Proceedings of the 1st Conference on Islamic Finance and Technology, CIFET, 21 September, Sidoarjo, East Java, Indonesia},
        publisher={EAI},
        proceedings_a={CIFET},
        year={2020},
        month={5},
        keywords={roa total assets npf total financing gdp islamic banks},
        doi={10.4108/eai.21-9-2019.2293936}
    }
    
  • Acep R. Jayaprawira
    Roikhan Mochamad Aziz
    Dita Nur Amanda
    Year: 2020
    Sharia Banking Profitability and Liquidity towards Economic Growth in Indonesia
    CIFET
    EAI
    DOI: 10.4108/eai.21-9-2019.2293936
Acep R. Jayaprawira1,*, Roikhan Mochamad Aziz1, Dita Nur Amanda1
  • 1: UIN Syarif Hidayatullah Jakarta
*Contact email: acepjayaprawira@yahoo.com

Abstract

The purpose of this study is to determine the significance of profitability and liquidity of Islamic banking with economic growth in Indonesia in the 2015-2017 period. This research is quantitative research that analyzes data in the form of numbers (numeric). The sampling technique used in this study is purposive sampling, which is the method of selecting samples based on considerations which means the selection of samples is not random. The analysis technique used in this study is to use the VECM method. Islamic banking variables used in this study are ROA, Total Assets, NPF, and Total Financing. While the economic growth variable used is GDP. The results of this study indicate that the development of Islamic banking has a relationship with economic growth in Indonesia, which is characterized by a long-term relationship between all variables of Islamic banking to GDP. While in the short term, only the variable ROA, Total Assets, and Total Sharia Banking Financing only affect GDP.