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Effect of Sharia Banking RGEC toward Indonesian GDP

Author

Listed:
  • Yulita, Nurma

    (Universitas Islam Negeri Sunan Kalijaga Yogyakarta)

  • Musthofa, Muhammad Wakhid

    (Universitas Islam Negeri Sunan Kalijaga Yogyakarta)

Abstract

This investigation aims to analyze the effect of sharia banking financial performance using the RGEC method (Risk Profile, Good Corporate Governance, Earnings, Capital) on the Gross Domestic Product (GDP). The independent variables in this study were measured the Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Operating Costs to Operating Income (BOPO), Good Corporate Governance (GCG), and Return On Equity (ROE), while the dependent variables measured by the percentage of Gross Domestic Product (GDP). The type of research is quantitative with six samples of Sharia banks consisting of Bank Muamalat Indonesia, BRI Syariah, BNI Syariah, Bank Mandiri Syariah, Bank Mega Syariah, and BCA Syariah with data for the quarter of 2016 to 2020. The analysis technique data were analyzed using panel regression with a fixed effect model method processed with Eviews 12 software. The results showed that the FDR, BOPO, and ROE variables had a positive influence and were significant on Indonesia's gross domestic product. Furthermore, the CAR and GCG variables cannot influence Indonesia's economic growth. Meanwhile, the results of Test F show the RGEC ratio of sharia banks had a significant influence on the Gross Domestic Product (GDP) at the same time.

Suggested Citation

  • Yulita, Nurma & Musthofa, Muhammad Wakhid, 2022. "Effect of Sharia Banking RGEC toward Indonesian GDP," EkBis: Jurnal Ekonomi dan Bisnis, UIN Sunan Kalijaga Yogyakarta, vol. 6(2), pages 129-140, December.
    • Handle: RePEc:ris:ekbisj:1694
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    More about this item

    Keywords

    Sharia Banking; RGEC; Gross Domestic Product (GDP);
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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