Optimization of Profit-Sharing Financing at Islamic Banking in Indonesia

Riyadi, Slamet; Iqbāl, Muḥammad; Pangastuti, Annisa Arifah; Muditomo, Arianto

doi:10.26905/jkdp.v25i2.5212

Cited by 4 publications

(12 citation statements)

References 14 publications

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“…These retained earnings will increase equity so that IRBs management can use it to be channeled as financing so that higher ROA opens opportunities to increase financing. The results show that ROA has a positive effect on financing [4,10]. So, the hypotheses are:…”

Section: Financing Scheme and Profitabilitymentioning

confidence: 91%

“…Financing risk, as measured by non-performing financing (NPF), will reduce profitability, so if the NPF is high, banks will be more careful in providing financing. As the results of previous studies show a negative influence of NPF on financing in Islamic banks [4,16]. Likewise, in conventional banks, non-performing loans (NPL) have a negative effect on loans [17].…”

Section: Financing Scheme and Financing Riskmentioning

confidence: 94%

“…With a higher NPF, the financing provided will likely decrease because management is concerned that the higher the NPF, the more careful the distribution of financing. The results of previous studies show a negative influence of NPF on financing [4]. Liquidity risk, as measured by the financing to deposit ratio (FDR), shows the amount of financing provided compared to public deposits, so the larger the FDR, the greater the financing provided [5].…”

Section: Introductionmentioning

confidence: 99%

“…Efficient banks allow for large profits that can be used to increase financing. Azizah et al [9] and Riyadi et al [4] conclude a negative effect between OEIR and financing. Likewise, third-party funds (TPF) are the ability of banks to mobilize public funds.…”

Section: Introductionmentioning

confidence: 99%

“…Most studies examine factors that affect total financing [9,10,14]. Some researchers use the dependent variable of profit-sharing financing [4,15]. Meanwhile, Hadiyati & Iqbal [13] examine profit margin financing (PMF) as the dependent variable.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Financing Scheme and Determinant Factors

Sutrisno¹

2022

Proceedings of the 19th International Symposium on Management (INSYMA 2022)

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This study aims to examine the factors that influence the financing scheme of Islamic Rural Banks (IRBs) in Indonesia. The financing scheme consists of profit margin financing (PMF) and profit-sharing financing (PSF). Factors thought to influence the financing scheme are non-performing financing (NPF), financing to deposit ratio (FDR), capital adequacy ratio (CAR), return on assets (ROA), operating to income ratio (OEIR), and company size (Size). The population in this study was 163 IRBs in Indonesia with a sample of 100 IRBs. The observation period was 4 years, with quarterly data. Hypothesis testing applied multiple regression. The results show that the factors influencing the financing scheme between PMF and PSF are the same, namely, NPF and Size have a significant negative effect, while FDR, CAR, ROA and OEIR have no effect. One variable is OEIR; if the significance level is 10%, then OEIR has a significant and negative effect on the profit-sharing financing scheme, but the profit-margin financing scheme has no effect.

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Section: Financing Scheme and Profitabilitymentioning

confidence: 91%

Section: Financing Scheme and Financing Riskmentioning

confidence: 94%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Financing Scheme and Determinant Factors

Sutrisno¹

2022

Proceedings of the 19th International Symposium on Management (INSYMA 2022)

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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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Risk Management and Rate in Growing of Profit-Sharing Financing

Junaini

Iqbāl

Masili

et al. 2023

IJFBS

Self Cite

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As a main characteristic of Islamic banks, profit-sharing financing (PsF) has an actual influence on driving the economy in the real sector. A PsF using mudharabah and musyarakah contract is mostly channeled to fund productive businesses. This study tries to find out how the Islamic bank performance reflected by credit risk, profit-sharing rate, and liquidity can increase the PsF growth in Islamic banks. Using a quantitative approach through regression analysis, this study analyzed the impact arising from the improved credit risk, profit-sharing rate, and liquidity on the growth of PsF. The data used is secondary data obtained from statistics on Islamic banking in Indonesia (ranging from the 1st quarter of 2015 to the 4thquarter of 2021). The findings revealed that the Islamic bank performances as represented by credit risk, profit-sharing rate, and liquidity can be an indicator of growth of PsF. A low profit-sharing rate, credit risk, and liquidity risk will encourage PsF growth.

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Optimization of Profit-Sharing Financing at Islamic Banking in Indonesia

Cited by 4 publications

References 14 publications

Financing Scheme and Determinant Factors

Financing Scheme and Determinant Factors

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

Risk Management and Rate in Growing of Profit-Sharing Financing

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