Determinants of Islamic Banking Profitability: A Comparative Analysis of Indonesia and Malaysia

ABSTRACT Islamic banking in Indonesia and Malaysia experienced differences asset growth market share, potentially causing dissimilarity profitability performance. This study aims to evaluate the factors that influence increase of using signaling theory including concentration (HHI), company size financing risk (NPF), national income (GDP) as control variables. It analyzed Indonesian Malaysian banks during period 2017-2021. The method used this is comparative descriptive with panel data regression analysis measuring instruments. Based on results empirical analysis, affect are risk, while Malaysia, it income. update view Malaysia. In addition, from managerial side, contributes creating NPF because these can country's banking. also development strategies, size, risks all Keywords: Banking, Profitability, Market Concentration, Company Size, Financing Risk ABSTRAK Perbankan syariah dan mengalami perbedaan dalam pertumbuhan aset share sehingga berpotensi menimbulkan kinerja profitabilitas. Studi ini bertujuan untuk mengevaluasi faktor yang mempengaruhi peningkatan profitabilitas perbankan di dengan menggunakan diantaranya konsentrasi pasar ukuran perusahaan risiko pembiayaan (NPF) serta pendapatan nasional sebagai variabel kontrol. menganalisis bank selama periode Metode digunakan oleh studi adalah komparatif deskriptif alat ukur analisis regresi panel. Berdasarkan hasil empiris, sedangkan nasional. Hasil penelitian memperbaharui pandangan tentang Selain itu dari sisi manajerial, berkontribusi menciptakan pengendalian pada karena tersebut mampu meningkatkan negara tersebut. juga pengembangan strategi pasar, semua Kata Kunci: Bank Syariah, Profitabilitas, Konsentrasi Pasar, Ukuran Perusahaan, Risiko Pembiayaan REFERENCE Abbas, A., & Arizah, A. (2019). Marketability, profitability, profit-loss sharing: evidence sharia Indonesia. Asian Journal Accounting Research, 4(2), 315–326. doi:10.1108/AJAR-08-2019-0065 Adelopo, I., Lloydking, R., Tauringana, V. (2018). 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