DETERMINANTS OF LIQUIDITY OF ISLAMIC COMMERCIAL BANKS IN INDONESIA
Keywords:
Liquidity, Profit-Sharing Financing, Capital Adequacy Ratio, Profitability, Non-Performing Financing, Bank SizeAbstract
This research aims to determine the effect of profit-sharing financing, capital adequacy ratio, profitability, financing risk, and bank size on the liquidity of Islamic commercial banks in Indonesia during 2017-2022 period.
The population of this research are all Islamic commercial banks registered with the Financial Services Authority. The samples used in this research are 10 Islamic commercial banks. The sampling technique used in this research is the purposive sampling method. The data analysis method in this research is Generalized Method of Moment while the data analysis tool used is STATA software version 17.
The research results show that profitability has a positive and significant effect on the liquidity of Islamic commercial banks in Indonesia. Meanwhile, profit-sharing financing, capital adequacy ratio, financing risk and bank size have no significant effect on the liquidity of Islamic commercial banks in Indonesia.
References
Addou, K. I., & Bensghir, A. (2021). Analysis of the Determinants of Bank Liquidity Risk: The Case of Islamic Banks in the UAE. SHS Web of Conferences, Vol. 119, No. 01008, 1-9.
Agustuty, L., & Ruslan, A. (2019). Determinants of Capital Buffer in the Banking Industry in Indonesia. Movere journal, Vol. 1, No. 2, 164-174.
Akhtar, M. F., Ali, K., & Sadaqat, S. (2011). Liquidity Risk Management: A Comparative Research Between Conventional and Islamic Banks of Pakistan. Interdisciplinary Journal of Research in Business, Vol. 1, No. 1, 35-44.
Al-Harbi, A. (2017). Determinants of Banks Liquidity: Evidence from OIC Countries. Journal of Economic and Administrative Sciences, Vol. 33, No. 2, 164-177.
Al-Harbi, A. (2020). Determinates of Islamic Banks Liquidity. Journal of Islamic Accounting and Business Research, Vol. 11, No. 8, 1619-1632.
Amalia, R. I. (2017). The Effect of Minimum Capital Adequacy, Profitability and Bank Size on Islamic Banking Liquidity Risk, Thesis, Department of Economics, Accounting Research Program, State University of Jakarta, Jakarta.
Amanah, R., Atmanto, D., & Azizah, D. F. (2014). The Effect of Liquidity Ratios and Profitability Ratios on Share Prices (Study of LQ45 Index Companies for the 2008-2012 Period). Journal of Business Administration (JAB), Vol. 12, no. 1, 1-10.
Anggraeni, & Berniz, Y. M. (2022). The Effect of Asset Quality, Profit and Loss Sharing on Sharia Banking Liquidity in Indonesia. Technium Social Sciences Journal, Vol. 27, 423-436.
Ardiansari, A. (2016). The Effect of Third Party Funds, Non-Performing Financing, Capital Adequacy Ratio and Return on Assets, on Liquidity Level. Management Analysis Journal, Vol. 5, No. 1, 7-16.
Asri, A. S., & Syaichu, M. (2016). Analysis of Factors Affecting Profit-Sharing Based Financing in Islamic Banking in Indonesia for the Period 2010-2014. Diponegoro Journal of Management, Vol. 5, No. 3, 573-587.
Aulia, S., & Isgiyarta, J. (2019). Analysis of the Effect of Placement with Bank Indonesia, Murabahah Financing and Non-Performing Financing Ratio on Liquidity of Islamic Commercial Banks (Empirical Research on Islamic Commercial Banks in Indonesia in 2013-2017). Diponegoro Journal of Accounting, Vol. 8, No. 4, 1-10.
Bimantoro, N. K., & Ardiansah, M. N. (2019). Analysis of the Effect of Capital Adequacy Ratio (CAR), Return on Asset (ROA), Non-Performing Financing (NPF), and Financing to Deposit Ratio (FDR) on Profit Growth at Islamic Commercial Banks in Indonesia for the Period 2013- 2017. Journal of Economic Science and Islamic Banking, Vol. 8, No. 2, 16-35.
Gogo, T. L., & Arundina, T. (2021). Analysis of Factors Affecting Liquidity Risk in Indonesian Islamic Banking. International Journal of Business and Economy, Vol. 3, No. 1, 98-114.
Hamid, S. R. (2020). Practical Guide to Econometrics Basic Concepts and Applications Using Eviews 10. Banten: CV. AA. Rizky.
Hidayat, A. (2024). Dynamic Panel Data (DPD) or GMM with STATA: Tutorial. Accessed April 17, 2024. https://www.statistikian.com/2024/01/data-panel-dinamis-dpd-atau-gmm-dengan-stata-tutorial.html.
Hidayati, N. L. (2014). The Effect of Sale and Purchase Financing, Production Sharing Financing, Lease Financing, and Non-Performing Financing Ratio on Liquidity of Islamic Commercial Banks in Indonesia, Thesis, Department of Economics, Accounting Research Program, State Islamic University (UIN) Maulana Malik Ibrahim Malang, Malang.
Ichwan, M. C., & Ryandono, M. N. H. (2016). Factors Affecting the Liquidity of Islamic Banks.
Journal of Islamic Economics Theory and Applied, Vol. 3, No. 2, 144-157.
Jedidia, K. B. (2020). Profit-and Loss-Sharing Impact on Islamic Bank Liquidity in GCC Countries.
Journal of Islamic Accounting and Business Research, Vol. 11, No. 9, 1791-1806.
Juanda, B. (2021). Dynamic Panel Data Model. Accessed April 17, 2024. https://bambangjuanda.com/wp-content/uploads/2021/09/Model-Data-Panel-Dinamis_BJ.pdf.
Lesta, V. (2022). The Effect of Profit-sharing Ratio, Equitable Distribution Ratio, and Return on Asset on Third Party Funds at Islamic Commercial Banks for the 2010-2021 Period, Thesis, Department of Economics and Islamic Business, Sharia Banking Research Program, State Islamic University (UIN) Raden Intan Lampung, Lampung.
Masruroh, M. (2018). Analysis of Factors Affecting Islamic Banking Liquidity in Indonesia (2011- 2016), Thesis, Department of Economics, Accounting Research Program, Islamic University of Indonesia Yogyakarta, Yogyakarta.
Meliana, M., Jeandry, G., & Taher, J. (2022). The Effect of Company Size, Profitability, Leverage and Liquidity on the Disclosure of Islamic Social Reporting (ISR) in Islamic Commercial Banks in Indonesia in 2015-2019. Journal of TRUST Accounting Research, Vol. 9, No. 2, 1-13.
Muharam, H. (2012). The Effect of Fundamental Factors to Liquidity Risk on Banking Industry: Comparative Research Between Islamic Bank and Conventional Bank in Indonesia. Conference in Business, Accounting and Management (CBAM), Vol. 1, No. 1, 359-368.
Najah, S. N. (2023). The Effect of Liquidity, Leverage, and Company Size on Financial Distress (Empirical Research on Infrastructure Companies listed on the IDX for the 2019-2021 Period), Thesis, Department of Economics and Business, Accounting Research Program, Muhammadiyah Purwokerto University, Purwokerto.
Novianti, M. (2019). Analysis of Differences in Financial Performance of Islamic Banks and Conventional Banks Using CAMEL Ratios. Journal of Fairness, Vol. 9, No. 2, 127-136.
Nurdin, N. N., Raupong, R., & Islamiyati, A. (2014). The Use of Robust Regression on Data Containing Outliers with the Moment Method. Journal of Mathematics, Statistics and Computing, Vol. 10, No. 2, 114-123.
Nurhayati, S. (2009). Sharia Accounting in Indonesia. Jakarta: Salemba Empat.
Pandu, M. J. (2016). Modeling the Percentage of Poverty in East Nusa Tenggara Province Using Spatial Econometric Models with Dynamic Panel Data, Thesis, Department of Mathematics and Natural Sciences, Statistics Study Program, Sepuluh Nopember Institute of Technology, Surabaya.
Prastiwi, I. E., Tho'in, M., & Kusumawati, O. A. (2021). Internal Factors Affecting the Liquidity of Islamic Banks: Analysis of Capital Adequacy Ratio (CAR), Third Party Funds (DPK), Non- Performing Financing (NPF). Scientific Journal of Islamic Economics, Vol. 7, No. 2, 1107-1116.
Rachman, R. A., Yulianto, A., & Utaminingsih, N. S. (2013). The Effect of Profit Sharing, Interest, Bank Size and Number of Branches on Mudharabah Deposits. Accounting Analysis Journal, Vol. 2, No. 4, 413-422.
Rahmani, N. A. B. (2017). Analysis of the Effect of Capital Adequacy Ratio (CAR) and Financing to Deposit Ratio (FDR) on Return on Asset (ROA) and Return on Equity (ROE) in Islamic Commercial Bank Companies in Indonesia. Journal of Economics and Business, Vol. 4, No. 2, 299-316.
Rufaidah, I. K., Djuwarsa, T., & Danisworo, D. S. (2021). The Effect of DPK, CAR, BOPO, and NPF on Liquidity in Islamic Commercial Banks. Journal of Applied Islamic Economics and Finance, Vol. 2, No. 1, 187-197.
Safitri, V. I., & Hendrani, A. (2020). The Effect of Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), Financing to Deposit Ratio (FDR) and Operational Efficiency (BOPO) on Profitability (Return on Assets) at Islamic Commercial Banks registered with Bank Indonesia. JCA Economics, Vol. 1, No. 1, 252-264.
Samsurin, U. (2017). The Effect of Sharia Bank Indonesia Certificates, Statutory Reserves, and Profit-Sharing Financing on the Liquidity of Islamic Commercial Banks in Indonesia (2011-2015 Period), Thesis, Department of Economics and Business, Sharia Banking Research Program, Syarif Hidayatullah State Islamic University Jakarta, Jakarta.
Sastrawan, R., Saputra, E., & Pratiwi, N. (2023). Determinants of Profitability with Loan to Deposit Ratio as Moderating Variable. Journal of Accounting and Finance, Vol. 11, No. 1, 57-64.
Sukmana, R., & Suryaningtyas, S. (2016). Determinants of Liquidity Risk in Indonesian Islamic and Conventional Banks. Journal of Sharia Economics, Vol. 8, No. 2, 187-200.
Suwanto, I., Zaman, B., & Faisol, F. (2023). Causality Analysis of Regular Sales and Consignment Sales and Cost of Goods Sold to Profit at K-24 Gurah Pharmacy. Management and Business Symposium II, Vol. 2, 1297- 1306.
Utami, N. P. M., Sumarjaya, I. W., & Srinadi, I. G. A. M. (2019). Modeling Rice Availability Ratio Using Dynamic Panel Data Regression. E-Journal of Mathematics, Vol. 8, No. 3, 199-203.
Widyarti, E. T., Widyakto, A., & Suhardjo, Y. (2022). Analysis of the Effect of Non-Performing Loan, Return on Assets, Return on Equity and Size on Banking Liquidity Risk (Case Research on Conventional Banks Registered in IDX Period 2016-2020). Journal of Management Dynamics (JDM), Vol. 13, No. 1, 78-86.
Yushinta, R., Rusdi, M., & Desiana, L. (2020). The Role of Capital Adequacy on the Effect of Financing Risk and Liquidity on Profitability (Research on Islamic Commercial Banks for the 2016-2018 Period). Al-Qardh Journal, Vol. 5, No. 2, 99-118.
Zainuri, H. (2016). The Difference in Liquidity of Islamic Banks Before and After the Super Visory Action Policy of the Otoritas Jasa Keuangan on Limiting Deposit Interest Rates of Conventional Banks. Journal of Akad, Vol. 1, No. 1, 22-41.
Zuhroh, I., & Amir, F. (2021). Econometrics With Eviews Software. Malang: UMMPress.
