Effect Of Financing For Islamic Banking On The Profitability In Indonesia (original) (raw)
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Analysis of Financing Performance and Profitability of Islamic Banking in Indonesia
IJASS JOURNAL, 2023
The performance of Islamic banking is closely related to the financing provided by banks to debtors. Types of financing provided include: Murabahah, Musyarakah and Ijarah. This study aims to analyze the effect of Murabahah, Musyarakah and Ijarah financing on banking profitability. This study uses a quantitative descriptive method. The results of this study conclude that Murabahah financing has a significant effect on bank profitability, Musyarakah financing variables have a significant effect on profitability, and Ijarah financing has a significant effect on profitability. Partially on Profitability The variables of Murabahah, Musyarakah and Ijarah simultaneously affect the Profitability variable and the R Square coefficient is 0.361 or 36.1 percent. this implies that the variables of Murabahah, Musyarakah and Ijarah Financing are able to explain the Profitability variable of 36.1 percent.
Assets : Jurnal Ilmiah Ilmu Akuntansi, Keuangan dan Pajak
This study pursuits to locate the effect of mudharabah, musyarakah, and murabahah financing at the profitability degree of Islamic industrial Banks in Indonesia within the 2015-2018 length. The populace on this have a look at there are 14 groups, and get three samples, particularly PT. bank Muamalat Indonesia, PT. BRI Syariah financial institution, and PT. Mandiri Syariah financial institution. This examine used a purposive sampling method in figuring out the pattern, while the records evaluation approach used more than one linear regression evaluation with the SPSS utility. The results of this observe suggest that the t-check indicates that partly mudharabah has a fine and insignificant effect on the extent of profitability, while musharaka has a poor and large impact on the extent of profitability, even as murabaha has a negative and insignificant impact on the profitability degree of Islamic business Banks in Indonesia. within the F test, the independent variable simultaneously h...
2019
As a country with the highest Muslim population in the world, Islamic banking system becomes an important element in Indonesia. However, the performance of Islamic finance has not been able to keep up with conventional financial growth. Actually, Islamic banks in Indonesia have quiet low profitability level. The profitability level can be seen from its return on assets (ROA). Islamic banks return on assets (ROA) is lower than small conventional banks. It was caused by high cost of financing and low third party funds growth of Islamic banking. Therefore, this study is aimed to examine the effect of Sharia funding and financing products toward profitability level of Islamic commercial banks in Indonesia. A quantitative approach is used by collecting the data from monthly financial statements of all Islamic commercial banks in Indonesia for the period of June 2014 until April 2019. The independent variables used for this analysis consist of Sharia funding which included Mudaraba demand...
Financing Diversification and Profitability of Islamic Banking in Indonesia
2021
This study aims to determine the effect of Islamic bank financing diversification based on economic sectors and based on the type of use on profitability. This study uses financing data for Islamic Banks and Islamic Business Units in 2014-2018. The data in this study are the times series data. Data analyzed by used multiple linear regression analyses. This research provides that results that the HHI of diversification of Islamic bank financing based on the economic sector is positively related to increasing the profitability of Islamic banks. It means diversification of financing based on high economic sectors, has an impact on reducing the profitability of Islamic banks in Indonesia. While the HHI of diversification of financing by type of use give a significant influence in increasing the profitability of Islamic banks in a negative direction. If Islamic banking only focuses on channeling financing to the consumption sector, it can have an impact on decreasing profitability. So th...
ISLAMIC BANKS’ PROFITABILITY AMID THE COMPETITIVE FINANCING IN INDONESIA
This study attempts to analyze the role of internal bank factors towards Islamic banks’ performance in Indonesia during 2006-2013. For this purpose, this study uses panel data approach to estimate the empirical model. In this research, the random effects model is selected to explain the Islamic banks’ profitability behaviour. The results present that all independent variables are good predictor for profitability which is measured by return on asset (ROA). The model shows that net profit margin and financing deposit ratio are significant predictors for Islamic banks’ financial performance. In contrast, non-performing financing and operating efficiency have negative impact to return on asset. In addition, this study indicates that capital adequacy ratio has negative correlation with profitability. It is evident from regression model that the Islamic banks’ profitability strongly depends on the profit margin and funds mobilization. Moreover, increasing in non-performing financing and operating expenses will reduce their profit. These results indicate that Islamic banking industry in Indonesia has not well developed. This study also reveals that the Islamic banks in Indonesia are probably facing losses in recent years. Islamic banks need to invite more funds from depositors and to mobilize their financing into more various business sectors. Islamic banks need to strengthen their risk management frameworks and to ensure their financing stability within the market.
Determinant of Islamic Banking Profitability in Indonesia
Jurnal Organisasi dan Manajemen, 2019
Finding a determinant of profitability has become one of the most popular topics in banking research. Previous research has identified many factors that significantly influence bank profitability. There are also many studies that measure the effectiveness of sharia banking globally, but few analyze the profitability issues of sharia banks. This study aims to analyze the impact of factors affecting profitability in Islamic Banks listed on the Indonesia Stock Exchange. The method used is multiple linear regression analysis. The variables are return on assets as dependent variable and murabahah, musyarakah, mudharabah, branch office, cash office, and Automatic Teller Machine as independent variable. This study found that funding factors such as murabaha, musharaka and conventional and electronic networking factors such as Branch Office, Cash Office, and ATM had positive and significant impact on profitablity of Sharia Bank, while mudharabah had a negative and significant influence on p...
Islamic Banks vs Conventional Banks in Indonesia: An Analysis on Financial Performances
Jurnal Pengurusan, 2016
Islamic banks in Indonesia havebeen in existence for more than two decades. Substantial development has taken place in this largest Muslim country. Regulator, academicians, and practitioners have been providing significant support with the objective of improving the performance of the Islamic banking. Hence, it is timely to assess whether its performance differs than that of the conventional banks. This paper aims to describe and critically evaluate and compare the financial performance of Islamic banks to that of conventional banks. Data of Capital Adequacy Ratio (CAR), Return on Asset (ROA), Operational Cost/ Operational Revenue (BOPO), Non-Performing Loan (NPL) /Non Performing Financing (NPF) and Loan Deposit Ratio (LDR)/ Financing Deposit Ratio (FDR) for Islamic and conventional banks are examined. The analysis of monthly data covers the period from January 2004 to July 2014 (127 observations). Paired sampled t-test was adopted to see whether there are significant differences in the financial ratios between both banks. This study found that CAR, ROA, BOPO and NPL of conventional banks are significantly higher than that of Islamic banks but not FDR. Based on the result of capital adequacy, the findings suggest that Islamic banks need to have more capital to face the involved risk as that of conventional banks. Conventional banks need to function them selves as financial intermediaries to support the real sector as that of Islamic banks.
2021
This study aims to determine the effect of Mudharabah Financing, Musharaka Financing and Ijarah Rental either partially or collectively on the level of profitability at PT. Bank Indonesia Syariah, Tbk. The research method used in this research is descriptive and verification methods with a quantitative approach. This study uses a multiple linear regression analysis model, using four classical assumptions, namely normality, multicollinearity, autocorrelation and heteroscedasticity. Based on the results of research using multiple regression analysis, for Mudharabah Financing, it is concluded that Mudharabah Financing (X 1 ) has no significant effect on the level of Profitability Level (Y). Furthermore, for Musharaka Financing, it is concluded that Musharaka Financing (X 2 ) has a positive and significant effect on the level of profitability. Then for the Ijarah Rental, it is concluded that the Ijarah Rental (X 3 ) has no significant effect on the Profitability Level (Y). Then the conc...
Determinants Profitability of Islamic Banks in Indonesia
2019
The aim of study is to analyse the determination of profitability of Islamic Banks in Indonesia. The sample used of all Islamic banks in Indonesia. Sampling method is purposive sampling and gotten 10 Islamic banks. Data analysed by using panel regression. The results of the research obtained that DER positively effect on ROA, while Operational Costs and Operating Income (BOPO) negatively influence to ROA. The variable NPF and CAR have no significant effect on Return on Assets (ROA) in Islamic
2020
This research was conducted to determine the effect of mudharabah and musharakah profit sharing financing on the profitability of Islamic commercial banks in Indonesia. This study uses the annual Islamic Commercial Bank financial reports obtained from the Financial Services Authority (Otoritas Jasa Keuangan) for the period 2015-2019. The test results using SPSS 25 show that both mudharabah and musyarakah financing have a significant effect on the profitability of Islamic banks. But unlike musyarakah financing, mudharabah financing actually has a negative effect on profitability, meaning that the higher an Islamic bank distributes mudharabah financing, the rate of profit will decrease.