| dc.description.abstract | This study aims to examine the influence of the variable capital adequacy, efficiency,
and financing problems on the profitability of Islamic banks in Indonesia. This type of
research uses explanatory research using secondary data in the form of financial ratios
from 2015 to 2019. The population in this research is 14 Islamic banks in Indonesia. By
using the purposive side, the research sample was 13 Islamic banks and 65 data. The
data analysis technique used multiple regression and included a normality test,
classical assumption, F-test, hypothesis test, and determination coefficient test. The
results of the study concluded that the variables of capital adequacy, efficiency, and
financing problems had a significant effect on the profitability of Islamic banks in
Indonesia. The results of this study support the theory of efficient capital structure,
although the composition of Islamic bank capital comes mostly from externals, because
Islamic bank management is very efficient in managing funding and financing activities
and can manage banks prudently where Islamic banks can suppress problematic
financing, Islamic banks can achieve high profit. This is also supported by the existence
of a temporary syirkah fund source of capital that is neither a type of debt nor owner's
equity. Temporary syirkah funds are a very efficient source of funds for Islamic banks
because the bank will reward the owners of temporary syirkah funds only if the bank
makes a profit. Conversely, if a Sharia bank does not gain a profit, aka a loss, then the
Sharia bank does not provide returns to the owner of temporary syirkah funds. This is
the advantage of Islamic banks compared to conventional banks. | en_US |
