ANALYSIS OF MACROECONOMIC FLUCTUATIONS IMPACT ON EFFICIENCY AND ISLAMIC BANKING QUALITY 2015-2019

This study aims to analyze the impact of macroeconomic shocks, such as economic growth, inflation and rupiah exchange rate on Islamic banking efficiency. uses two-stage least squares (TSLS) method, which is a method with two endogenous variables, namely non-performing financing (NPF) ratio representation quality operating expense income (BOPO) So that TSLS purify these variables against stochastic disturbances. monthly data from January 2010 2020, or many 121 observations. The observation obtained Banking Statistic published by Financial Services Authority (OJK). efficiency banks influenced number sharia office networks, capital adequacy ratios, NPF ratios. itself affected conditions (economic growth appreciation rate) well banking. Based above findings, recommendations were given, including urgency simultaneously increasing accompanied monitoring Indonesia's conditions, so it hoped will be more resilient shocks competitive in national financial services industry.