FACTORS INFLUENCING THE PROFITABILITY OF PRIVATE ISLAMIC COMMERCIAL BANKS IN INDONESIA

Yuniorita  Indah Handayani; Fangli  Zeng; Wiwik  Fitria Ningsih; Vian  Afri Liandi

doi:10.31967/prmandala.v5i0.1182

Yuniorita Indah Handayani Institute Technology and Science Mandala
Fangli Zeng Zhejiang Wanli University
Wiwik Fitria Ningsih Institute Technology and Science Mandala
Vian Afri Liandi Institute Technology and Science Mandala

DOI: https://doi.org/10.31967/prmandala.v5i0.1182

Abstract

The development of Sharia Banking in Indonesia has increased from year to year. This increase can be seen from the increase in the amount of Disbursed Financing (PYD) and Third Party Funds (DPK).Based on data obtained from the OJK, the largest percentage of financing distributed by sharia banking is Murabahah, Istishna, Musyarakah, Ijarah, Qard and Mudharabah. The amount of Disbursed Financing have impact on islamic bank profitability. This research aims to analyze the influence of mudharabah financing, musyarakah financing, murabahah financing, financing risk and liquidity risk on the profitability of Private Islamic Commercial Banks. The research population is National Private Islamic Commercial Banks registered in Financial Services Authority (OJK). The sample used was 5 banks, the sampling method used was purposive sampling. The data used is secondary data obtained from financial reports from each bank and OJK. The data analysis method used is multiple linear regression and hypothesis testing using the t-test. The research results show that musyarakah financing, murabahah financing, financing risk partially have a significant effect on the profitability of islamic banks, while mudharabah financing, liquidity risk have no effect on the profitability of sharia banks.