MAKROEKONOMI, SPESIFIK BANK, LINGKUNGAN GEOGRAFIS DAN PROFITABILITAS BANK SYARIAH (Studi Empiris pada Negara ASEAN-5)

Abstract

This study aims to examine the macroeconomics, bank-specifics and geographical environments on the profitability of Islamic banks in the ASEAN-5 countries. Inflation, GDP and interest rates are used as indicators of macroeconomics. Bank size, capital adequacy, asset quality, liquidity, operational efficiency and gearing ratios are used as proxies of specific banks. The geographical environment is measured by dummy variables of Muslim-majority countries or Muslim minority countries, while the profitability of Islamic banks is measured by Return on Assets (ROA). This study also aims to see how the geographical environment impacts on ROA over time in ASEAN-5 countries and how the comparative profitability of Islamic banks in Muslim-majority countries and Muslim minority countries. This study uses three analytical approaches (principal component analysis (PCA), panel data regression and quantile regression). Principal component analysis (PCA) is used to examine the spread pattern of Islamic banks in ASEAN-5 countries, panel data regression is used to test the relationship between macroeconomic variables, bank specific and geographical environment to Islamic banks profitability, and quantile regression is used to test the difference effect of geographical environments from time to time. This study uses 31 samples of Islamic bank from Indonesia, Malaysia, Brunei Darussalam, Thailand and Philippines with observation period 2013 to 2016. The result of research using principal component analysis (PCA) test shows that the profitability (ROA) of Islamic bank is heterogeneously distributed and varies between regions. The result of regression test of panel data shows that inflation, GDP, capital adequacy, asset quality and operational efficiency have a negative significant effect on ROA, interest rate, bank size, liquidity and gearing ratio have negative insignificant effect on ROA and geographical environment have positive significant effect on ROA . The result of quantile regression test show that there is an asymmetry and nonlinear relationship between the geographical environment and profitability (ROA) of Islamic banks.