Influence of External Factors and Policies of Bank Indonesia (BI) & Financial Services Authority (OJK) Against Profitability of Sharia Bank in Indonesia

Abstract

The aims of this study are: To prove and analyze the influence of external
factor on profitability. Proving and analyzing the influence of Bank Indonesia and
OJK policy factors on profitability. This study uses 24 Islamic Commercial Banks
and Sharia Business Units. This research is a population research or census where
the entire population is sampled with a research period from 2012 to 2020, so that
216 data can be seen in this study. The study used multiple linear regression.
Linear regression of panel data was chosen by the authors to see the influence of
External Factors (consisting of: economic growth, inflation, SBI) and Bank
Indonesia (BI) & Financial Services Authority (OJK) policies (consisting of: NPL
and CAR) on Profitability ( as measured by ROA) to answer the hypothesis,
several tests were carried out which included a partial test or t test, analysis of the
coefficient of determination, and a simultaneous test or f test. Where the data
processing and testing uses SPSS Version 25 software. The variable economic
growth has a positive and significant effect on the profitability variable, the
inflation variable has a positive and significant effect on the profitability variable,
the SBI variable has a positive and insignificant effect on the profitability
variable, the NPL variable has a negative and no effect. significant to the
profitability variable, the CAR variable has a positive and significant effect on the
profitability variable,