Contributing Factors That’s Effect to Istishna Mode of Financing Performance at Sharia Banking in Indonesia and Malaysia

Abstract

The development of Islamic banks along with sharia units from year to year reflects increase the public confidence to istishna mode of financing of sharia bank. This study aimed to determine the influence of deposits, equity, non-performing financing, and growth non-performing financing to istishna financing both on partial and simultaneous measurements. The sample selected in this study was sharia commercial banks operating in Indonesia and Malaysia. This research used purposive sampling method, the sampling research was includes BRI Syariah, Maybank, Mandiri Syariah, Muamalat, Malaysia Affin Islamic Bank Berhad. The analytical method used regression analysis of the balanced panel. The f test results showed that the variable of deposits, equity, non performing financing and growth non performing financing simultaneous had has positif effect on Istishna financing. The t test results showed deposit variable, equity, and growth non performing financing partially had has positif effect on the Istishna financing. The only non performing financing has a significant negative relationship to the variable of financing Istishna. While The coefficient of determination showed all independent variables contributed predominant percentage portion to the dependent variable. The remaining minor percentage portion might be influenced by other variables, which did not exists in this research such as Capital Adequacy Ratio, Loan Deposit Ratio, and the level of foreign currencies reserve owned by the banks etc.