Performance Analysis of Islamic Banks in Indonesia Using Machine Learning

Author:

Ali Mahrus,Gernowo Rahmat,Warsito Budi

Abstract

This study aims to examine several factors that influence the performance of Islamic banks in Indonesia by using the variables Return On Assets (ROA), Operating Expenses for Operating Income (BOPO), Capital Adequacy Ratio (CAR), Non Performing Financing (NPF), Financing to Deposit Ratio (FDR) and Potential Losses (PK). The data used in the study takes secondary data from the website of the Financial Services Authority (OJK) from the recapitulation of reports from Islamic banks throughout Indonesia, data taken from 2011 to 2020 which is a combination of Time series and cross section data. The analysis technique used is machine learning with multiple linear regression. The results of the study after being calculated using SPSS, the t table value is 2.776 and the F table value is 5.05. The final result is the hypothesis (H6) is accepted, which means that the variables X1, X2, X3, X4, X5 have a simultaneous effect on Y. Then the ROA value simultaneously influenced by the value of BOPO, CAR, NPF, FDR AND PK..

Publisher

EDP Sciences

Subject

General Medicine

Reference19 articles.

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2. Alamsyaha Halim, Ariefiantob Moch.Doddy, Saheruddina Herman, Wardonoa Seto, Trinugrohoc Irwan, “Depositors’ trust: Some empirical evidence from Indonesia”, Research in International Business and Finance , vol.54, December 2020

3. Aisyiah N, Darminto , Husaini A., Pengukuran kinerja keuangan perusahaan menggunakan Metode rasio keuangan dan metode EVA (Economic Value Added) (studi pada PT. Kalbe farma Tbk Yang terdaftar di bursa efek indonesia periode 2009-2011), Jurnal Administrasi Bisnis (JAB)|Vol. 2 No. 1 Hal 116-117. 2013.

4. Elyanti R, Abu AH, Muhammad A.. “Islamic Banking Performance Measurement: A Conceptual Review Of Two Decades”. International Journal of Islamic Banking and Finance Research. Vol. 5, No. 1. 2021

5. Asutay M, Harningtyas AF, “Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt”. International Journal of Islamic Economics and Finance Studies.Volume 1, 2015.

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