The Effect Of Asset And Liability Management On Stability And Profitability In Islamic Banks

Darmawan Darmawan(1*), Dafelia Qodhari(2),

(1) UIN Sunan Kalijaga Yogyakarta
(2) UIN Sunan Kalijaga Yogyakarta
(*) Corresponding Author

Abstract


This study analyzes the relationship between Asset Liabilities Management and stability and profitability in Islamic banks. The purpose of this study is to assess the effect of asset and liability management and identify challenges and opportunities in asset and liability management in Islamic banks. The assessment of asset management in this study is projected by NPF, while liabilities or liquidity uses FDR. Regarding stability and profitability, this study is projected using CAR and ROA ratios. This research is quantitative and uses E-views software version 12 to analyze the data. The data was collected in the form of time series from the annual reports of Islamic Commercial Banks in the period 2013-2022, and the analysis method used was multiple linear regression with two models. Before analyzing the data, the researcher tests the classical assumptions to verify that the model meets the Ordinary Least Squares (OLS) assumptions. The results of regression and hypothesis testing show that NPF and FDR have a negative and significant influence on CAR. Furthermore, NPF has a negative and significant effect on ROA, while FDR has a positive and insignificant effect on ROA.

Keywords


ALMA, Stability and profitability, Islamic Banking

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DOI: http://dx.doi.org/10.33019/ijbe.v9i1.1005

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