| Abstract: |
Purpose: The study aims to analyse the social funds’ productivity of Islamic
banks in Indonesia and the antecedents of it. The study will measure the
social fund productivity followed by the investigation about the variable
which can determine the Islamic bank productivity. Methodology: The study
conducted at nine Islamic banks Indonesia. Two stages of the Malmquist
productivity index were applied to annual data from 2012-2018. The variables
which are tested its effect on social funds’ productivity return on asset,
operational efficiency, inflation, OPEC oil price, and economic growth. Main
Findings: social funds’ productivity of Islamic banks in Indonesia has
experienced progress during the observation period. It is supported by the
progress on technological change and efficiency change. The antecedents of
social funds’ productivity return on asset and operational efficiency, while
macroeconomics conditions have no significant effect on social funds’
productivity. Applications of this study: This study enriches the research on
Islamic banks and gives the recommendation for policymakers to supervise
better and for banks’ managers to improve the social funds’ productivity.
Novelty/Originality of this study: This research is the preliminary study on
the determinant of social funds’ productivity in Islamic banks. |