The Effect of Non-Performing Financing and Third Party Funds on the Profitability Through Ps/Rs and PLS Financing

doi:10.46281/ijibfr.v6i1.1320

Cited by 3 publications

(3 citation statements)

References 16 publications

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“…Fund accumulation could be a consequence of the COVID-19 pandemic, which has made banks more cautious in providing financing to customers due to potential losses. This is consistent with research by (Pratiwi et al, 2022;Salman, 2021;Sukma et al, 2019), which states that Third-Party Funds (DPK) have no influence on profitability.…”

Section: The Influence Of Third-party Funds (Dpk) On Profitabilitysupporting

confidence: 92%

The Effect of Murabahah Financing, Financing Deposit Ratio (Fdr), and Third Party Funds on Profitability With Non-Performing Financing (Npf) as a Moderating Variable in Bprs.

Navita,

Fauzi,

Muliasari

2023

CASHFLOW

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In the realm of Islamic banking and finance, the mechanisms and factors influencing the profitability of Islamic financial institutions have garnered significant attention from researchers and practitioners alike. Islamic People's Financing Banks, as specialized entities operating under Islamic financial principles, play a vital role in offering financial services that adhere to Shariah principles. This study aims to investigate the impact of Murabahah Financing, Financing Deposit Ratio (FDR), Third-Party Funds (DPK), and Non-Performing Financing (NPF) on Profitability in Islamic People's Financing Banks in Indonesia. The research employs a quantitative approach, utilizing documentation techniques and secondary data collected from BPRS financial reports available on the Financial Services Authority (OJK) website for the 2020-2021 period. The sample selection employs a random sampling technique, resulting in a total of 132 samples. The study employs various data analysis methods, including descriptive statistical analysis, tests for classical assumptions, multiple linear regression, and moderated regression analysis. Based on the partial results of the study, it is observed that Murabahah Financing, Financing Deposit Ratio (FDR), and Third-Party Funds (DPK) do not exhibit a significant influence on profitability. Conversely, Non-Performing Financing (NPF) demonstrates a significant negative impact on profitability. Furthermore, with the inclusion of NPF as a moderating variable, the research findings indicate that NPF is unable to moderate the effects of Murabahah Financing, FDR, and Third-Party Funds on Return on Assets (ROA).

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Section: The Influence Of Third-party Funds (Dpk) On Profitabilitysupporting

confidence: 92%

The Effect of Murabahah Financing, Financing Deposit Ratio (Fdr), and Third Party Funds on Profitability With Non-Performing Financing (Npf) as a Moderating Variable in Bprs.

Navita,

Fauzi,

Muliasari

2023

CASHFLOW

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“…Business loans are a statistically significant determinant of bank profits (Ekpu & Paloni, 2016). However, some researchers believe that TPF has no effect on bank performance (Salman, 2021). A bank cannot manage the amount of existing TPF, so it has no significant impact on the bank's profitability.…”

Section: Discussionmentioning

confidence: 99%

“…TPF is defined in Islamic banking as funds obtained from the public (both individuals and businesses) in Rupiah and foreign currencies using various savings instruments owned by Islamic banks. TPF consists of Wadia savings, Mudarabah savings, Mudarabah current accounts, and Mudarabah deposits (Salman, 2021). The amount of third-party funds means that the bank will have more funds to channel to debtors, increasing the possibility of profit (Parenrengi & Hendratni, 2018).…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Do corporate governance implementation and bank characteristics improve the performance of Indonesian Islamic banking? Before-COVID-19 pandemic analysis

Nurkhin

Kusmuriyanto

Widiyanto

et al. 2023

Banks and Bank Systems

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Islamic banking has existed in Indonesia since 1992. The performance of Islamic banking is interesting for further analysis. This study aims to analyze the impact of good corporate governance (GCG) implementation and bank characteristics on the performance of Islamic banking in Indonesia before the COVID-19 pandemic. Profitability is a measure of banking performance and is proxied by return on assets (ROA) and return on equity (ROE). The research sample consists of Islamic commercial banks that published financial and annual reports between 2011 and 2019. The data collection method used is documentation. Multiple regression analysis was used for data analysis. The results indicate that the implementation of GCG has no significant impact on performance (probability values of 0.425 and 0.420 on ROA and ROE with coefficients of 0.016 and 0.019). The P-value of the non-performing loans (NPF) variable is &lt; 0.001 on ROA and ROE, which means that NPF has a significant negative impact on ROA and ROE. Third-party funds only have a significant impact on ROE with a p-value of 0.046. Meanwhile, the size of a bank has not been shown to have a significant impact on the performance of Islamic banking in Indonesia. Efforts to maintain NPF are critical for banks to achieve good performance (profitability). NPF demonstrates the risk of nonpayment of Islamic bank financing. AcknowledgmentWe gratefully acknowledge the research funding provided by LPPM Universitas Negeri Semarang (contract number: 19.8.3/UN37/PPK.3.1/2022).

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Risk Management and Rate in Growing of Profit-Sharing Financing

Junaini

Iqbāl

Masili

et al. 2023

IJFBS

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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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The Effect of Non-Performing Financing and Third Party Funds on the Profitability Through Ps/Rs and PLS Financing

Cited by 3 publications

References 16 publications

The Effect of Murabahah Financing, Financing Deposit Ratio (Fdr), and Third Party Funds on Profitability With Non-Performing Financing (Npf) as a Moderating Variable in Bprs.

The Effect of Murabahah Financing, Financing Deposit Ratio (Fdr), and Third Party Funds on Profitability With Non-Performing Financing (Npf) as a Moderating Variable in Bprs.

Do corporate governance implementation and bank characteristics improve the performance of Indonesian Islamic banking? Before-COVID-19 pandemic analysis

Risk Management and Rate in Growing of Profit-Sharing Financing

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