INFLUENCE OF THIRD PARTY FUNDS, OPERATIONAL COST EFFICIENCY, NPF, AND FDR ON FINANCIAL PERFORMANCE OF SHARIA BANKS IN INDONESIA (2019-2023)

Abstrak

This research aims to determine the influence of third party funds, operational cost efficiency, non-performing financing and financing deposit to ratio on Financial Performance of Sharia Commercial Banks in Indonesia for the Period (2019-2023) simultaneously and partially. This research uses monthly time series data which is analyzed using multiple linear regression. There are four variables consisting of third party funds, operational cost efficiency, non-performing financing and financing deposit to ratio of financial performance for Sharia Common Bank In Indonesia. This type of research is secondary data. The data collection method used is documentation while the analysis method is used by eviews 10 version. The results of the study indicate that the BOPO and FDR variables have a positive and significant effect on the financial performance of Islamic banks. Meanwhile, the DPKmand NPF variables have a negative but insignificant effect on financial performance. Thus, this study indicates that operational cost efficiency and the bank's ability tonmanage the financing to deposit ratio are important factors that support the financial performance of Islamic banks, while third party funds and problematic financing do not have a significant effect.