Islamic Economics Journal

The Role of Economic Growth and Economic Freedom in Moderating the Influence of Bank Health Performance on Profitability

2025-11-08T10:46:49+08:00

This study aims to analyze the effect of bank soundness on the profitability of Islamic Banks in Indonesia, with economic growth and economic freedom as moderating variables. Bank soundness is measured using the RGEC approach. This study adopts a quantitative approach, employing panel data regression analysis and Moderated Regression Analysis (MRA). The data used consist of annual secondary data from 2011 to 2024, including financial ratios from the annual reports of Islamic commercial banks in Indonesia, as well as data on Indonesia’s economic growth and economic freedom. The results show that bank soundness has a significant effect on profitability, except for GCG. Economic growth and economic freedom moderate the relationship between all independent variables and the dependent variable, except for GCG. These findings emphasize the importance of strengthening internal bank factors and macroeconomic support to enhance the profitability of Islamic banking in Indonesia.

Income, Service Convenience, and Consumptive Attitudes: Determinants of Shopee Paylater Adoption among Gen Z Consumers

2025-10-20T15:57:22+08:00

The purpose of this research is to test and analyze whether income, convenience, and consumer behavior influence the decision to use Shopee Paylater. The research method used in this research is quantitative research with a descriptive design. The analysis method used in this research uses SEM-PLS (Structural Equation Modeling - Partial Least Structural). This research data was obtained from 103 respondents as research material. In processing the data, we used SmartPLS 4.0 software for Windows 11. The results of this research show that: first, income significantly influences the decision to use Shopee Paylater; second, convenience significantly influences the decision to use Shopee Paylater; and third, consumer behavior significantly influences the decision to use Shopee Paylater. The research implies that businesses can enhance adoption by addressing these factors and tailoring their products to meet the specific needs of younger consumers, while also opening avenues for future studies on trust, risk, and cross-cultural comparisons in digital finance adoption.

The Dynamics Shaping Profitability in the Turkish Banking Sector: An Empirical Assessment

2025-07-17T18:22:46+08:00

This study empirically examines the key determinants of bank profitability in the Turkish banking sector from 2001 to 2023. Recognizing the sector’s pivotal role in macroeconomic stability and financial intermediation, the analysis employs second-generation panel econometric techniques to explore both the long-run and short-run dynamics influencing profitability. Drawing on a comprehensive dataset covering 25 banks, the study utilizes return on assets (ROA) as the dependent variable. It considers capital adequacy, deposit-to-asset ratio, loan-to-asset ratio, and non-interest income as core explanatory variables. The findings reveal robust and statistically significant long-run relationships between all explanatory variables and bank profitability. Capital adequacy emerges as the most influential determinant, underscoring the strategic importance of robust capitalization in ensuring resilience and sustained performance. In the short term, while non-interest income continues to exert a positive impact, deposit mobilization exhibits a temporary adverse effect reflecting the complexities of funding costs in Türkiye’s inflationary environment. The use of both Pooled Mean Group (PMG) estimation and Fully Modified OLS (FMOLS) enhances the credibility and robustness of the results. These findings underscore the importance of maintaining strong capital buffers, managing deposit structures effectively, supporting sustainable credit growth, and fostering income diversification through digital and non-traditional banking services. The study provides valuable insights for bank managers, regulators, and policymakers seeking to enhance the profitability and resilience of the Turkish banking system in the face of evolving macroeconomic and structural challenges.