Islamic bank performance: Does low-cost fund and labor cost affect it? (Empirical cases in Bank Syariah Mandiri-Indonesia)

Authors : Ahmad BADAWİ, Lucky NUGROHO, Nurul HİDAYAH

Pages : 81-92

View : 22 | Download : 11

Publication Date : 2021-12-26

Article Type : Research Paper

Abstract :During the Covid-19 Pandemic, all sectors, including banking, were affected. The impact that occurs in the banking sector, including Islamic banking, is excess liquidity. However, Bank Syariah Mandiri insert ignore into journalissuearticles values(BSM);, as a sharia bank with the largest market share in the Indonesian Islamic banking industry, maintained its performance during the Covid-19 Pandemic. Therefore, this research aims to analyze the factors that affect the Return on Assets insert ignore into journalissuearticles values(ROA); based on the aspects of low-cost funds insert ignore into journalissuearticles values(CASA); and the ratio of labor costs insert ignore into journalissuearticles values(BTK); in BSM. The method in this research is quantitative, using multiple regression. The years of observation in this study were from 2018 to 2020. The regression test results were that BTK had a negative and significant effect on ROA while CASA had an insignificant effect on ROA. Based on these results, it is known that although the CASA funds from BSM are pretty good, BSM has not been able to optimally distribute these funds to the community due to the current Covid-19 Pandemic. Also, BSM`s good performance is contributed by employee productivity and employee competence.
Keywords : Islamic Bank, Low Cost Fund, Labor Cost, Return on Asset