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Analysis Of Company Performance Factors That Affect Sharia Banking Market Share In Indonesia (2020-2024)

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"Objective: This study aims to analyze the factors influencing the market share of
Islamic banking in Indonesia, focusing on the variables ROA, NPF, and Third Party
Funds (DPK). The study uses a quantitative approach with a regression method to
examine the influence of each variable on changes in market share. The results
indicate that ROA and Third Party Funds (DPK) positively influence market share
growth, while NPF negatively impacts and can undermine industry performance.
These findings reinforce empirical evidence that profitability, financing quality, and
fundraising capacity are key factors in expanding the market share of Islamic
banking in Indonesia.
Method: This study uses a quantitative approach with an associative approach to
analyze the influence of ROA, NPF, and TPF on the market share of Islamic
banking in Indonesia. The data used are secondary data in the form of time series
statistical reports on Islamic banking published by the Financial Services Authority
(OJK).Prior to the analysis, all variables were converted to stationary form using
the ADF test. The estimation model used is linear regression with the form ΔMarket
Share = β0 + β1ΔROA + β2ΔNPF + β3Δln(TPF) + ε.Classical assumption tests
include normality, multicollinearity, autocorrelation, and heteroscedasticity.
Hypothesis testing is performed using the t-test (partial), F-test (simultaneous), and
coefficient of determination (R²) test.
Results: Based on the regression estimation results, the following results were
obtained:
 A constant of 0.112 indicates that when all independent variables are set to
zero, the change in market share still increases by 0.112%.
 ROA has a coefficient of +1.85, indicating that an increase in ROA has a
significant positive effect on market share. The higher the profitability of an
Islamic bank, the greater the customer confidence in placing funds.
 NPF has a coefficient of -0.72, indicating that an increase in NPF has a
significant negative impact on market share. Non-performing loans reduce
bank performance, thereby suppressing market share growth.
 (TPF) has a coefficient of +0.95, indicating that an increase in Third Party
Funds has a positive effect on market share. The greater the funds raised,
the greater the bank's ability to expand financing.
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 The R² value of ±0.81 indicates that 81% of the variation in market share
can be explained by changes in ROA, NPF, and TPF, with the remainder
influenced by other factors not included in the model.
Overall, this study shows that profitability and fundraising ability are factors that
strengthen the market share of Islamic banking, while financing risk (NPF) is the
main inhibiting factor."

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Availability

Detail Information

Series Title

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Call Number

REF 332.1 PRA a

Publisher

Bogor : IAI Tazkia., 2024

Collation

MBS

Language

English

ISBN/ISSN

NIM.18101039

Classification

332.1

Content Type

-

Media Type

-

Carrier Type

-

Edition

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Subject(s)

Islamic Banking
Market Share
NPF
DPK
ROA

Specific Detail Info

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Statement of Responsibility

Firman Ali Haydar Eka Pratama

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