Factors that Influence Revenue-Based Financing in Islamic Banking in Indonesia

Sapari Sapari, Sutjipto Ngumar

Abstract


There are only 13 Islamic banks operating in Indonesia, compared to 102 conventional banks, although it holds status as world’s largest Muslim population. This research focuses on revenue-based financing in Islamic banking whose potential to Indonesia’s economy remains underexplored. This paper analyzes five factors that influence revenue-based financing: profit sharing rate, financing to deposit ratio, capital adequacy ratio, nonperforming financing, and Bank Indonesia Sharia Certificate (SBIS). Using multiple linear regression, this paper examines the data from quarterly financial reports during 2011-2017 of nine Islamic banks as the sample. This paper finds that financing to deposit ratio and SBIS have the positive influence. Regression estimation results shows the model prediction capability of 46.9%, while the remaining 53.1% is influenced by variables outside the model. Future studies might extend observation period and research scope to examine the contribution of revenue-based financing to country’s economy further.


Full Text:

PDF

References


Antonio, M., S. 2001. Islamic Banks From Theory to Practice. First edition. Gema Insani Press. Jakarta.

Asri, A., S.2016. Analysis of Factors Affecting Profit Sharing Based Financing in Islamic Banking for the 2010- 2014 period. Diponegoro Journal of Management 5 (3).

Bank Indonesia. 2013. Published Public Islamic Banking Financial Report. Accessed through http://www.bi.go.id/id/publikasi/laporan-keuangan/bank/umum syariah /Default.aspx. on October 12, 2017 at (11:30).

Choirudin, A. 2017. Analysis of Factors Affecting Mudharabah Profit Sharing Funds at Sharia Commercial Banks. Journal of Accounting Science and Research 6 (9).

Dendawijaya, L. 2009. Banking Management. Second print. Indonesian galia. Jakarta. National Sharia Council of the Indonesian Ulema Council (DSN-MUI). 2003. Capital

Market and General Guidelines for Implementing Sharia Principles in the Capital Market No: 40. DSN-MUI. Jakarta.

Fatwa of the National Syari'ah Council of the Indonesian Ulema Council (DSN-MUI).2000. Principles of Distribution of Business Products in Syari'ah No.15.DSN-MUI Financial Institutions. Jakarta.

Ghozali, I. 2011. Application of Multivariate Analysis with IBM SPSS 19. Edition 5. Badan Program and Diponegoro University Publisher. Semarang.

Hanafi, M., M. and A. Halim. 2012. Analysis of Financial Statements. Third Edition. First print. UPP YKPN. Yogyakarta.

Jamilah. 2016. Factors Affecting Mudharabah Financing in Sharia Commercial Banks in Indonesia. Journal of Accounting Science and Research. Volume 5, Number 4.

Cashmere. 2012. Other Financial Banks and Institutions. PT. Raja Grafindo Persada. Jakarta.

Kusnianingrum, D. 2016. Determinants of Murabahah Financing (Study at Bank Syariah Mandiri). Journal of Accounting Science and Research. Volume 5, Number 1.

Margono. 2004. Educational Research Methodology. Rineka Cipta. Jakarta.

Muhammad. 2005. Islamic Banking Management. UPP AMP YKPN. Yogyakarta.

Mulyono, T., P. 2000. Analysis of Banking Financial Reports. Jakarta.

Palupi, I., F. 2015. Analysis of the Effect of Third Party Funds, Profit Sharing Levels,Non-Performing Financing and Own Capital on the Volume of Profit-Based Financing in Islamic Banking in Indonesia Case Study of Bank Muamalat Indonesia. Essay. Muhammadiyah Surakarta University. Surakarta.

Pratama, B., A. 2010. Analysis of Factors Affecting Banking Credit Distribution Policy (Study on Commercial Banks in Indonesia Period 2005 - 2009). Thesis. Diponegoro niversity Post Graduate Program. Semarang. Bank Indonesia Regulation Number 6 of 2004 Commercial Banks Conducting Business Activities Based on Sharia Principles.14 October 2004. State Gazette of the Republic of Indonesia of 2004 Number 122. Jakarta. Bank Indonesia Regulation Number 9 of 2007 Sharia Principles Implementation in Activities of Fundraising and Funds Distribution and Sharia Bank Services. December 17, 2007. State Gazette of the Republic of Indonesia in 2007 Number 165. Jakarta.

Statement of Financial Accounting Standards No. 105 Mudharabah Accounting. Islamic Accounting Standards Board - Indonesian Accountants Association. Jakarta.

Rahman, A., F., & Rochmanika, R. 2012. Effect of Purchase Financing, Profit Sharing Financing, and Non Performing Financing Ratio on Profitability of Sharia Commercial Banks in Indonesia. Essay . Faculty of Economics and Business Universitas Brawijaya. Poor.

Riyadi, S & Yulianto, A. 2004. Effects of Profit Sharing Financing, Purchase Financing, Financing to Deposit Ratio (FDR) and Non Performing Financing (NPF) on Profitability of Sharia Commercial Banks in Indonesia. Accounting Analysis Journal 3 (4): 466-474.

Sanusi, A. 2014 Business Research Methodology. Fourth print. Jakarta: Salemba Empat.

Sinungan, M. 2000. Bank Fund Management. Earth Literacy. Jakarta.

Siamat, D.2005. Management of Financial Institutions. Monetary and Banking Policy. First division of the Faculty of Economics, University of Indonesia. Jakarta

Sugiyono.2013. Qualitative Quantitative Research Methods and Alfabeta R & D. Bandung.

Taswan. 2010. Banking Management. UPP STIM YKP. Yogyakarta.

Triyuwono, I.2012. Islamic Accounting Perspective, Methodology and Theory. King Grafindo Persada. Jakarta. Law of the Republic of Indonesia Number 21 of 2008 Islamic Banking. July 16, 2008. State Gazette of the Republic of Indonesia in 2008 Number 94. Jakarta.

Yaya, R., Martawireja, A.E. & Abdurahim, A.. 2014. Accounting for Islamic Banking: Contemporary Theory and Practice. Salemba Empat Publisher. South Jakarta


Refbacks

  • There are currently no refbacks.