Changes In Macroeconomic Factors And Their Implications On Islamic Banking Profitability In Indonesia (A Case Study Of Pt. Bank Muamalat)

English

Abstract

Macroeconomic factors are external factors that can affect the profitability of Islamic banking. The macroeconomic factors examined in this study that are suspected to influence profitability are inflation, BI Rate (Bank Indonesia's benchmark interest rate), and the money supply. The research aims to determine macroeconomic factors consisting of; the impact of inflation, BI Rate, and the money supply on Return On Assets. The research object is PT. Bank Muamalat, and secondary data sources include the financial reports of PT. Bank Muamalat, the official website of Bank Indonesia, and the official website of the Central Statistics Agency. This research adopts a quantitative approach with multiple linear regression analysis using the semilog method. The research findings indicate that inflation, BI Rate, and the money supply have a significant influence on profitability. Therefore, it is expected that banks will continuously monitor the profit-sharing ratio and margins offered to customers to prevent a decline in profitability during monetary crises caused by direct inflation and subsequent changes in the money supply affecting the BI Rate.