THE IMPACT OF COST TO INCOME RATIO, NET BENEFIT AND OPERATING EXPENSES ON ISLAMIC COMMERCIAL BANK LOSS RESERVES

Annisa, Anggraini and Fatih, Fuadi and Is, Susanto THE IMPACT OF COST TO INCOME RATIO, NET BENEFIT AND OPERATING EXPENSES ON ISLAMIC COMMERCIAL BANK LOSS RESERVES. MUTANAQISHAH : Journal Of Islamic Banking.

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Abstract

Abstract This research is motivated by the importance of risk management in sharia banking, especially in managing Reserves for Impairment Losses (CKPN) as a mitigation measure against potential financing risks. This research aims to examine the influence of Cost to Income Ratio (CIR), Net Benefit (NI) and Operating Costs Operating Income (BOPO) on Allowance for Impairment Losses (CKPN). The population in this research is all Sharia Commercial Banks registered with the Financial Services Authority for the 2019-2023 period. In this research, the sample was determined for 5 years. Determining the sample criteria used the purposive sampling method, namely a sampling technique based on certain criteria and a sample of 6 banks was obtained so that the total number of samples was 30 samples. The method used is panel data regression analysis using the Random Effect Model approach which is analyzed using Eviews 10 software. Based on the research results, it can be obtained that partially the Cost to Income Ratio has a significant effect on CKPN. Net Benefit have a significant effect on CKPN. Operational Costs Operational Income does not have a significant effect on CKPN. Simultaneously Cost to Income Ratio, Net Benefits and Operational Costs Operational Income has a significant effect on CKPN in Sharia Commercial Banks registered with the Financial Services Authority for the 2019-2023 period. In Islamic business management, efficiency (CIR and BOPO), transparency and benefit optimize halal income (NI) and maintain financial stability in accordance with sharia values. Keywords: Cost to Income Ratio, Net Benefit, Operating Expenses Operating Income, Impairment Loss Reserves.

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