This study aims to analyze empirically the determinants of the working capital financing of MSMEs under dual-banking system like Indonesia in the period January 2015 to April 2022. By using the selected variables and the time series data analysis method, namely the Error Correction Model (ECM), this study found that: (1) In the short term, the NPF variable have a significant effect on the decline in the distribution of capital working financing in Islamic banking in Indonesia; (2) In the long term, the variables of number of branch offices and ROA have a significant influence in increasing the number of working capital financing distributions for MSMEs in Islamic banking in Indonesia. Meanwhile, the inflation variable does not have an influence on the amount of Islamic banking financing distribution in Indonesia, both in the short and long term. This research is expected to contribute to policy making related to Islamic banking financing for the MSMEs sector in Indonesia.

The purpose of this study was to find out how to optimize the management of productive zakat funds LAZ Nurul Hayat Surabaya in the goat livestock sector to achieve their desired goals. As well as the material and non-material impacts felt by mustahiq farmers from the optimization. This study uses qualitative methods with a descriptive case study strategy. The object of this research is LAZ Nurul Hayat Surabaya. By conducting in-depth interviews with 5 respondents consisting of program directors, program managers, PIC programs, and 2 assisted farmers. After interviewing the results of the study were analyzed using data triangulation to obtain conclusions. The results of this study indicate that LAZ Nurul Hayat has been optimal in managing productive zakat in the goat breeding sector. This is because LAZ Nurul Hayat in carrying out the Village Empowerment Livestock program applies three important stages, Mustahiq Screening, Production Process, and Market Potential. From this stage it can have a positive impact on mustahiq from additional income, amount of mustahiq, knowledge, to the desire to be independent.Keywords: Optimization, Management, Zakat Productive