Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Optimization of Profit-Sharing Financing at Islamic Banking in Indonesia

Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Optimization of Profit-Sharing Financing at Islamic Banking in Indonesia

economic growth; equivalent rate; mudharabah deposits; non-performing financing; profit-sharing financing

The purpose of this study is to identify factors that can encourage an increase in profit-sharing financing. These factors are third-party funds in the form of mudharabah deposits, non-performing financing, equivalent rate, operational efficiency ratio, economic growth, and inflation. The research method uses a co-integration and error correction model (ECM) with a sample of the Islamic banking industry in Indonesia from the first quarter of 2015 to the third quarter of 2020. The results show that the factors that encourage profit-sharing financing are the growth of third-party funds in the form of mudharabah deposits, non-performing low funding, low equivalent rate, operational efficiency, and economic growth. These factors are the key to driving the growth of profit-sharing financing. This research contributes to providing various alternative strategies in encouraging the growth of profit-sharing financing, such as increasing retained earnings from profit, providing attractive
profit-sharing incentives, transparency of financial reports to attract people to invest in Islamic banks, prevention and supervision of non-performing financing, be careful in determining the ratio by taking into account several internal and external aspects, as well as paying attention to the movements of existing economic growth.

Selamet Riyadi, Muhammad Iqbal, Annisa Arifah Pangastuty, Arianto Muditomo

DOI: 10.26905/jkdp.v25i2.5212

Universitas Merdeka Malang

April 2021

Sri Wahyuni

ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)

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Jurnal Keuangan dan Perbankan Universitas Merdeka Malang