The Effect of Problem Financing and Capital Adequacy on Profitability: Case Study on Islamic Commercial Banks Registered in the Financial Services Authority for the Period 2016-2020

Abstract

This study aims to determine the Effect of Problematic Financing (NPF) and Capital Adequacy (CAR) on Profitability (ROA) in Islamic Commercial Banks for the Period 2016-2020. The population in this study is sharia commercial bank period 2016-2020. Sampling techniques use purposive sampling. The sample that met the research criteria was 11 banks. The data analysis methods used are descriptive analysis and multiple linear regressions. The results of this study stated that Problem Financing (NPF) has a negative effect on Profitability (ROA). Capital Adequacy (CAR) has a significant positive effect on Profitability (ROA).