The Factors that Affecting Sustainability Ratio Syaria Banking during the Global Financial Crisis: Empirical Evidence from Indonesia

Sri, Wahyuni (2014) The Factors that Affecting Sustainability Ratio Syaria Banking during the Global Financial Crisis: Empirical Evidence from Indonesia. ARTIKEL PROSIDING.

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Abstract

This study aims to examine the efficiency of Syaria banking in Indonesia, as measured by the sustainability ratio. In spesific, the study aims to: i) examine the factors that affect sustainability ratio of Syaria banking in Indonesia, include: ROA, ROE, BOPO, FDR dan NPF; ii) examine the stability of performance of Syaria banking in the period before the global crisis (2007), when the global crisis (2008-2009) and the period after the global crisis (2010). Data that used in this study are mountly financial statement of Syaria banking are listed in Bank Indonesia, with the period from 2007 to 2013. Using multiple linear regression models and chow test, the results of this study indicate that factors affecting sustainability ratio are ROA, ROE, BOPO and NPF while the most dominant factor affecting the sustainability ratio is ROE. The results of this study so indicate that the financial global crisis affect the stability of the regression model, or in other words the ratios relationship of Syaria Banking in Indonesia with the Financial Sustainability Ratio experience structural changes during the period 2007-2010, but relative stable after two years pasca crisis. This result is opposite with the conventional banking which have experience structural changes during the crisis (Almalia et al, 2008), and relative permanen during five years. The results of this study provide empirical evidence that with syaria system, Syaria banking in Indonesia sucess to survive from the strom crisis. The results of this study are expected to contribute significantly to the managers of Syaria banks and Bank Indonesia. For managers of Syaria banks, the results of this study can be used as a basic input for evaluating and improve the efficiency of bank is being managed. As for Bank Indonesia, the results of this study can be used to evaluate the efficiency of Syaria banking in Indonesia and make design policies that can increase the efficiency of banks, particularly Syaria banking.

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