Saudi Journal of Economics and Finance (SJEF)
Volume-3 | Issue-01 | 30-37
Original Research Article
Factor Affecting of Sharia Commercial Bank Profit Sharing Financing Volume Increase in Indonesia
Muhammad Darma Halwi, Mohammad Iqbal Bakry, Triyani, Andi Mattulada Amir, Ridwan, Haerul Anam
Published : Jan. 16, 2019
Abstract
This study aimed to analyze the effect of profit sharing rate, capital adequacy ratio, and third-party funds to financing
volume of profit sharing in sharia commercial bank in Indonesia. Quantitative research with verificative approach. The
samples were eight sharia commercial banks from 11 sharia commercial banks in Indonesia. Data collection was
quarterly financial report (quarter, covering profit sharing, capital adequacy ratio, third-party fund, profit sharing volume)
of sharia commercial bank during 2011-2015 (160 observations) obtained from website of Bank Indonesia. Data analysis
is panel data regression. Profit-sharing rate ranged from 1.28-21.11% with an average of 6.27% during 2011-2015.
Capital adequacy ratio ranged from 11.00 to 63.77% with an average of 23.43%. Third party funds ranged from 167 -
62,112 billion rupiahs with an average of 15,353 billion rupiahs. The volume of profit-sharing financing distributed by
sharia commercial banks in Indonesia ranged from 1 - 23,826 billion to an average of 4.537 billion. The profit sharing
rate had no significant effect on the volume of profit sharing (p = 0.343), while the capital adequacy ratio had a negative
and significant effect on the profit sharing (p = 0.000) volume, while the third party funds had a positive and significant
effect on the profit sharing volume p = 0.000). Factors which affect the volume of financing are the ratio of capital
adequacy and third party funds. A low capital adequacy ratio and high third party funds will have an effect on increasing
the financing volume.