Determinan of Implementation Profit Sharing Financing  in Islamic  Banking

Winarsih, Winarsih; Asokawati, Winda

doi:10.30659/ijibe.4.1.582-594

Cited by 4 publications

(7 citation statements)

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“…It could be due to an increase in the non-performing financing ratio 2017 of 0.0204 to almost double to 0.0336 in 2017. The results of this study are in line with Salman (2021), Winarsih and Asokawati (2019), Wirman (2018) and Sakhowi (2016) did not find the effect of non-performing financing on profit-sharing-based financing.…”

Section: The Effect Of Non-performing Financing On Profit Sharing Fin...supporting

confidence: 90%

“…Likewise, there was a decrease in CAR of 0.20521 in 2018 to 0.1969 in 2019. The results of this study support Winarsih and Asokawati (2019), Kalkarina et al (2016) also Liliani and Khairunnisa (2015), who did not find the effect of the capital adequacy ratio on profit-sharing-based financing.…”

Section: The Effect Of Capital Adequacy Ratio On Profit Sharing Finan...supporting

confidence: 85%

“…Data on non-performing financing at Islamic banks decreased from 3.26% in 2018 to 3.23% in 2019 (Sharia Banking Statistics, 2021). Nevertheless, on the other hand, the results of previous empirical research did not find evidence of the effect of non-performing financing on the amount of profit-loss sharing financing (Permataningayu & Mahdaria, 2019;Sakhowi, 2016;Salman, 2021;Winarsih & Asokawati, 2019;Wirman, 2018).…”

Section: Introductionmentioning

confidence: 89%

“…However, this was not accompanied by empirical research results contradicting the data. Most research was empirically unable to affect the capital adequacy ratio on profit-loss sharing financing (Kalkarina et al, 2016;Liliani & Khairunnisa, 2015;Winarsih & Asokawati, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…In the 2018-2019 period, the growth of third party funds of 9.5% decreased significantly to 4.7% in 2019-2020. However, previous empirical research has empirically proven that third party funds affect profit-loss sharing financing (Hafizh et al, 2020;Nurdiansyah et al, 2020;Primadhita et al, 2021;Riyadi et al, 2021;Rukmana, 2016;Sakhowi, 2016;Winarsih & Asokawati, 2019). The greater the number of third party funds that Islamic banks have Collected, the greater the amount of profit-loss sharing financing that Islamic banks channel to mudharib.…”

Section: Introductionmentioning

confidence: 99%

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The Determinants of Profit-Loss Sharing Financing of Islamic Banks in Indonesia

Salman¹

2023

muqtasid

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Profit-loss sharing financing is one of the leading business activities carried out by Islamic banks, including buying, selling, and leasing. Thus, it is important to identify the determinants of profit-loss sharing financing of Islamic banks. This study examines the effect of capital adequacy ratios, non-performing financing, third party funds, and profit-sharing rate on mudharabah deposits of Islamic banks in Indonesia. Eleven Islamic banks in Indonesia from 2015 to 2019 periode were selected as sample of the study using purposive sampling. Data analysis using Partial Least Square with SmartPLS software version 3.3.7. The study results indicate that third-party funds have a significant positive effect on profit-loss sharing financing. The increasing number of third-party funds that Islamic banks have collected from customers impacts increasing distribution in the form of profit-loss sharing financing. The study results also indicate that the capital adequacy ratio, non-performing financing, and profit-sharing rate on mudharabah deposits do not affect profit-loss sharing financing. The implications for Islamic banks are to maintain the amount of third-party funds collection and compliance with sharia principles.

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Section: The Effect Of Non-performing Financing On Profit Sharing Fin...supporting

confidence: 90%

Section: The Effect Of Capital Adequacy Ratio On Profit Sharing Finan...supporting

confidence: 85%

Section: Introductionmentioning

confidence: 89%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Determinants of Profit-Loss Sharing Financing of Islamic Banks in Indonesia

Salman¹

2023

muqtasid

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The effect of internal factors on the mudharabah financing of Indonesian Islamic banks

Muhammad

Nugraheni

2021

Journal of Sustainable Finance & Investment

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Analyse the Effect of Islamic Derivatives during Financial Crises of 2008 Using Data Envelopment Analysis

Asst.

Abdul²

2020

J. Phys.: Conf. Ser.

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There is a very broad debate recently on the competence of Islamic financial derivatives in banks as a risk management tool better than traditional financial derivatives in conventional banks. The economic crisis that occurred in 2008 was a real measure to prove or deny this claim. In terms of bank performance, this research empirically compares Islamic and traditional banks, to evaluate the feasibility and efficiency of Islamic and traditional banks. The Data Envelopment Analysis (DEA) as statistical approach used in this research. The Kuwaiti banks were selected as a case study for the period 2006-2011 because it cover the period before and after the financial crisis of 2008. The data obtained from the Scope website, the annual accounts from banks, the IMF database, PhD studies and other tools. The research showed that Kuwait’s traditional banks were higher in efficiency and performance before the 2008 financial crisis, but the Islamic banks made a better performance afterwards. However, Islamic and traditional banks are subject to a comparable degree of risk, but different in nature; and the Islamic banks are less safe to financial shocks than conventional banks are. Since Islamic banks are unable to charge a fixed, standardized return and are unable to borrow from the financial market, Islamic banks may face more risk and unpredictable asset returns. The implication of these facts of the over-management modernisation of Islamic banks is important in order to reach a higher degree of efficiency. It will give Islamic banks an advantage over the traditional bank. For traditional banks, they need to invent specific strategies to reduce costs and retain their market position.

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Determinan of Implementation Profit Sharing Financing in Islamic Banking

Cited by 4 publications

References 0 publications

The Determinants of Profit-Loss Sharing Financing of Islamic Banks in Indonesia

The Determinants of Profit-Loss Sharing Financing of Islamic Banks in Indonesia

The effect of internal factors on the mudharabah financing of Indonesian Islamic banks

Analyse the Effect of Islamic Derivatives during Financial Crises of 2008 Using Data Envelopment Analysis

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