The Role of Risk Management Determines the Profitability of Bank Syari'ah Indonesia During the Covid-19 Pandemic

Abstract

The outbreak of the Covid-19 pandemic has disrupted global political, economic, social, religious and financial structures, including Shariah financial institutions, especially Bank Shariah Indonesia. Therefore, the risks that Islamic banks have to face during the pandemic are much higher, which will later affect the bank's profitability. In this study, the authors analyze the effectiveness of risk management of Sharia Indonesia banks during the pandemic by measuring the impact of BOPO, FDR and NPF on ROA as measures of bank profitability. This type of research is descriptive explanatory research. This study uses a finite population and from 2019 he uses time series data in the form of financial reports from Bank Sharia Indonesia 2023. The method used is multiple regression analysis using the SPSS version 22 program. The results of this study show that risk management has a very strong impact on Bank Shariah Indonesia's profitability, as evidenced by the high coefficients of constant beta for each variable. . Whether it's a BOPO, FDR or NPF variable. Additionally, the R Square result when measuring the three risk control variables shows a result of 0.981 or 98.1%. In other words, changes in Bank Shariah Indonesia's profitability performance (ROA) can be influenced by changes in its three independent variables, operating expenses. Operating profit, cash-to-deposit ratio, distressed funding. However, during the COVID-19 pandemic, Bank Shariah Indonesia's risk management was suboptimal. This can also be seen from the negative direction of the influence of each variable.