The Impact of Asset, Mudharabah Time Deposit and Non Performing Financing (NPF) to Profitability Islamic Banking in Indonesia
Raditya Sukmana(a*), Nadhilah Junun (b)

a) Faculty of Economic and Business, Airlangga University, Surabaya, East Java, Indonesia
b) Faculty of Economic and Business, Airlangga University, Surabaya, East Java, Indonesia

Abstract

The purpose of the research is to analyze the impact of banking internal factor, such as Size, Mudharabah Time Deposit and Non Performing Financing (NPF) to Return On Asset (ROA) and Return On Equity (ROE) of Islamic Bank in Indonesia. This research adopts quantitative approach such as data stasionarity test and cointegration test. The data are obtained from Bank Indonesia which cover span from September 2003 to September 2014. The result shows Mudharabah Time Deposit and NPF affects ROA negatively. This suggest that, the banks have been successfully maintained the credit risk so as to able to get the optimum Islamic bank profitability.

Keywords: Asset; Deposito Mudharabah; NPF; Profitability; ROA; ROE

Topic: Financial Management and Accounting