Analysis of the Effect of Financing on the Profitability of Islamic Commercial Banking in 2016-2020

Authors

  • Aguk Triyanto Development Economy Program Study, Faculty of Economy and Business, Universitas Negeri Malang, Malang, Indonesia
  • Imam Mukhlis Development Economy Program Study, Faculty of Economy and Business, Universitas Negeri Malang, Malang, Indonesia

DOI:

https://doi.org/10.37275/arkus.v8i2.188

Keywords:

Mudharabah, Musyarakah, Murabahah, Non-performing financing, Return on assets

Abstract

This study was conducted to determine the effect of mudharabah, musyarakah, murabahah, and non-performing financing (NPF) financing on the profitability of sharia commercial banks registered with the Financial Services Authority (OJK) for the 2016-2020 period. The analysis used in this study uses vector error correction models (VECM) analysis techniques. The results of this study indicate that in the short term there is only one significant variable on return on assets (ROA), namely the NPF variable. Meanwhile, the results of the long-term analysis show that the mudharabah and NPF variables have a significant effect on ROA at the 5% level. Meanwhile, the musyarakah and murabahah variables have no significant effect on ROA. Meanwhile, the impulse response function (IRF) of the mudharabah, musyarakah and murabahah variables have a positive and negative effect, while the NPF variable has a negative effect. For FEVD the variable that has a major contribution to ROA is mudharabah financing, followed by murabahah and NPF, then the last contribution is the musyarakah variable.

Authors

  • Aguk Triyanto1*
  • Imam Mukhlis1
  1. 1Development Economy Program Study, Faculty of Economy and Business, Universitas Negeri Malang, Malang, Indonesia

Corresponding author Aguk Triyanto — aguk.triyanto.1804326@students.um.ac.id

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Published

2022-03-31

Issue

Vol. 8 No. 2 (2022): Arkus

Section

Articles

License

Authors retain copyright and grant Arkus the right of first publication. Published articles are licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (CC BY-NC-SA 4.0). This license permits sharing and adaptation for non-commercial purposes, provided appropriate attribution is given and adaptations are distributed under the same license. Official license: https://creativecommons.org/licenses/by-nc-sa/4.0/.

How to Cite

Analysis of the Effect of Financing on the Profitability of Islamic Commercial Banking in 2016-2020. (2022). Arkus, 8(2), 244-252. https://doi.org/10.37275/arkus.v8i2.188

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