Do Financing Schemes Affect the Functions of Islamic Banks in Indonesia?

Suwasdi, Wahyu Wastuti; Hidayah, Nur; Nasution, Siti Sarah

doi:10.30993/tifbr.v15i2.285

Cited by 4 publications

(6 citation statements)

References 27 publications

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“…However, this result does not support research by Yusuf et al. (2019) and Suwasdi et al. (2021), which found that PLS financing has not significantly affected the ROA of Islamic Banks, which means PLS financing does not increase the level of profitability of Islamic Banks.…”

Section: The Effect Of Pls (Mudharabah and Musyarakah) Financing On P...contrasting

confidence: 86%

“…The greater the PLS financing, the greater the profits obtained by the Bank (Kuswara et al 2019;Masnah & Hendrawati, 2020). However, different results were found by Yusuf, Hamdani, & Kholik (2019) and Suwasdi, Hidayah & Nasution (2021), where PLS financing hurts the profitability of Islamic banks, meaning that mudharabah and musyarakah financing decreases the level of profitability. Therefore, the hypothesis to be tested in this study is: H1: PLS financing has a positive and significant effect on the profitability of Islamic Rural Bank in Indonesia.…”

Section: Hypothesismentioning

confidence: 80%

“…However, Yusuf et al. (2019) and Suwasdi et al. (2021) found that PLS financing has not significantly affected the ROA of Islamic Banks.…”

Section: Introductionmentioning

confidence: 92%

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Are Sharia Financing Schemes Profitable? The Case of Islamic Rural Banks in Indonesia

Hidayah

Karimah²

2023

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Some studies find that Profit and Loss Sharing/PLS (mudharabah and musyarakah) and non-PLS (murabahah) financing positively affect Islamic banks' profitability, while other studies have found a negative relationship. This study aims to analyze the effect of PLS and non-PLS financing on the performance of Islamic banks, as proxied by the profitability ratio of ROA (Return on Assets) with the Non-Performing Finance (NPF) as a moderating variable on six Islamic Rural Banks (IRBs) using panel regression and moderated regression analysis. It finds that the PLS and non-PLS financing positively and significantly influence the IRBs' profitability. NPF as a moderating variable has weakened the effect of PLS financing on the IRBs' profitability. Meanwhile, NPF strengthens the effect of non-PLS financing on the IRBs' profitability. PLS financing with NPF can reduce the IRBs' profitability, and non-PLS financing with NPF can increase the IRBs' profitability. These findings explain why murabahah is still the dominant financing in Islamic banks. Islamic banks should strive to achieve their ideal form as a profit-sharing financial intermediary to respond to the criticism that there is no substantial difference between Islamic and conventional banks as both rely on fixed returns in the financing, perceived as similar to riba, prohibited in Islam.

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Section: The Effect Of Pls (Mudharabah and Musyarakah) Financing On P...contrasting

confidence: 86%

Section: Hypothesismentioning

confidence: 80%

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Are Sharia Financing Schemes Profitable? The Case of Islamic Rural Banks in Indonesia

Hidayah

Karimah²

2023

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“…Without education, humans will find it difficult to keep up with the rapid advancements in knowledge. Education is expected to build high-quality and highly competitive individuals, and it is also expected to humanize people through education, in line with Nelson Mandela's statement that education is the only thing that can change the world (Suwasdi & Said, 2022).…”

Section: Introductionmentioning

confidence: 80%

The Application of Field Trip Learning Method to Mangrove Forest as a Source of Geography Learning

Asyari,

Munandar,

Samadi

2023

Scaffolding

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In this study, the aim was to determine differences in the results of student scores using the field trip learning method, both pre-test and post-test on the field trip learning method. This study uses a quantitative research approach with a type of experimental research. This type of research is an experiment that uses the population in this study is class XI IPS SMAN 1 Sindang ranging from XI IPS 1 to XI IPS 4, which consists of 144 students, but the sample in this study is class XI IPS 1 and XI IPS 2 consisting of 36 students per class when totaled into 72 student samples. The sampling technique carried out in this study is using purposive sampling techniques. The method of data collection in this study is through test exam results conducted pre-test and post-test in learning to see the difference in student scores by providing test, while the data analysis technique used is the T-test analysis with the aim of seeing the difference in value results before and after being given online and offline field trip learning treatment. The data analysis technique used is the T-test analysis with the aim of seeing the difference in value results before and after being given online and offline field trip learning treatment. The results of this study were that there were differences in the learning outcomes of the control class and the experimental class both in the pre-test and post-test. The control class in the pre-test had an average score of 67.33, and after being given offline field trip treatment, the average value increased to 79.89, while the experimental class in the pre-test had an average value of 65.61 and after being given an online field trip treatment the average value increased to 80.38. It can be concluded that these two field trip learning methods can improve student scores, although, in this learning method, there are advantages and disadvantages of each.

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“…Universities can play an active role in helping zakat management organizations identify potential beneficiaries requiring financial assistance for education (Kopnina, 2020). This creates a synergy between the world of education and social empowerment, which in turn can increase the effectiveness of university management in making a positive contribution to society through quality and inclusive education (Suwasdi & Said, 2022). Thus, the close relationship between zakat management organizations and universities can create an ecosystem that supports education and social welfare (Alshater et al, 2021;Rahim et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

The Relationship of Zakat Management Organization (ZMO) to the Effectiveness of Higher Education Management

Syahputra,

Kaswinata,

Siregar

et al. 2023

Idarah

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This research aims to analyze the transformation of zakat management as a construct for the development model of independence in higher education institutions in Indonesia. Identifying zakat management includes differences in religious interpretations, regulatory ambiguity, and management ineffectiveness . The research adopts a qualitative descriptive survey method conducted at the Islamic University in Medan, North Sumatra. The study highlights the symbiotic relationship between zakat management organizations and educational institutions, emphasizing the important role of zakat in supporting financially disadvantaged students. Through collaboration, universities can actively identify deserving recipients and promote social responsibility. Zakat institutions emerge as financial entities and development partners, empowering beneficiaries towards economic independence. The research findings also indicate the effectiveness of zakat distribution through several means, including providing scholarships, improving educational infrastructure, enhancing education quality, and promoting equal opportunities in higher education. This study advocates for integrating justice, transparency, and sustainability in zakat operations, positioning these institutions as pillars supporting economic and social development in Islamic society. This research identifies current challenges in the zakat management system and proposes solutions to enhance its effectiveness in Indonesia, a Muslim majority country.

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Do Financing Schemes Affect the Functions of Islamic Banks in Indonesia?

Cited by 4 publications

References 27 publications

Are Sharia Financing Schemes Profitable? The Case of Islamic Rural Banks in Indonesia

Are Sharia Financing Schemes Profitable? The Case of Islamic Rural Banks in Indonesia

The Application of Field Trip Learning Method to Mangrove Forest as a Source of Geography Learning

The Relationship of Zakat Management Organization (ZMO) to the Effectiveness of Higher Education Management

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