The Effect Of Financial Ratios On Islamic Rural Bank Performance In Indonesia

This study aims to analyze the effect of Capital Adequacy Ratio CAR Non-Performing Financing NPF Operating Costs to Operating Income Ratio and Financing to Deposit Ratio FDR toward Return on Assets ROA either jointly or partially and also looking for the most dominant influencing factor. As for the object of the research are 47 Islamic Rural Banks in Indonesia with total assets of IDR 3908 billion or 505 of total assets of Islamic Rural Banks in Indonesia that is IDR.7739 billion. The analysis was done by regression with the result of independent variable of Non Performing Financing NPF and Operating Cost to Operating Income Ratio partially have a significant and negative effect toward Return On Assets. However Capital Adequacy Ratio CAR and Financing to Deposit Ratio FDR are slightly influential and have insignificant effect toward Return on Assets ROA of Islamic Rural Banks in Indonesia partially while jointly have positive and significant influence toward Return On Assets. The most dominant Independent Variables which affect Return on Assets ROA partially is Operating Costs to Operating Income Ratio and then followed by Non-Performing Financing NPF.