The Impact of Internal Performance and Macroeconomic Conditions on Profitability in Indonesian Banking From 2015-2017

The purpose of this study is to analyze and measure the effect of internal performance and macroeconomics conditions on profitability in Indonesian banking (conventional and syariah bank) from 2015-2017. This research uses Granger of Causality and Vector Autoregressive (VAR)/Vector Error Correction Model (VECM) as a data analysis tool. The conclutions of this research are: 1) For conventional banks: the factors that have a positive influence to profitability (ROA) are BI Rate, NPL, inflation, and loan to deposit ratio; 2) For Islamic banks: the factors that have a positive influence to profitabilty (ROA) are exchange rate and inflatio