ANALYSIS OF THE INFLUENCE OF ECONOMIC GROWTH, INFLATION, AND FOREIGN EXCHANGE RATE ON THE PROFITABILITY OF SHARIA COMMERCIAL BANKS IN INDONESIA FOR THE 2016-2020 PERIOD
Luthfi Akmal Muzakki (a*), Sri Herianingrum (b)

(a)Islamic Economics Department, Universitas Airlangga
Street. Airlangga No.4 - 6, Airlangga, Kec. Gubeng, SBY City, East Java 60115
(b)Islamic Economics Department, Universitas Airlangga
Street. Airlangga No.4 - 6, Airlangga, Kec. Gubeng, SBY City, East Java 60115

Abstract

This study aims to determine the effect of macroeconomic variables, namely economic growth, inflation and foreign exchange rates on the profitability of Islamic banks in Indonesia. The data sources for macroeconomic variables in this study are secondary data published by BPS and SEKI, while the profitability data for 14 Islamic banks in Indonesia are taken from the OJK Sharia Banking Statistics. The research method used in this study is a quantitative method with panel data analysis. The results showed that there was no significant effect of macroeconomic variables, namely economic growth, inflation and exchange rate variables on the profitability of Islamic banks partially or simultaneously. Gross Domestic Product (GDP) has a significant positive effect on the profitability of Islamic Banks.

Keywords: Profitability, Islamic Commercial Banks, Economic Growth

Topic: Green and blue Islamic Finance