The Impact of Green Banking and Financial Performance on the Profitability of Islamic Commercial Banks in Indonesia in 2021-2024

Abstrak

Introduction: The profitability of Islamic Banks (BUS) in 2021-2024 experienced an increase in growth after the COVID-19 pandemic, supported by improved financial performance and Green Banking activities. The purpose of this study is to determine the effect of Green Banking, CAR, BOPO, FDR, and NPF on ROA, both partially and simultaneously. Research Methods: This study uses a quantitative method with Panel Data Regression data processing techniques with the FEM method. The sample used is 2021 to 2024. The hypothesis in this study is that the Panel Data Regression method with FEM has proven accurate in testing the influence between dependent and independent variables. Results: Partially, Green Banking and CAR have no effect, while BOPO, FDR, and NPF have an effect on ROA. Simultaneously, they have an effect on ROA. Conclusion: The results obtained can indicate that Islamic Banks must pay attention to the financial performance conditions of various sectors in order to achieve the desired profit target and are expected to continue to improve Green Banking so that operations are carried out more efficiently.