Macroeconomics And Profit Sharing Financing In Islamic Banking In Indonesia: The Third Parties Fund As Intervening

Abstract

The main problems of Third Parties Fund and profit and loss sharing financing in Islamic banking in Indonesia are influenced by external factors have known as macroeconomics. Third parties funds as an intervening variable are what distinguish research conducted by researchers from previous research. The method used in this study uses the path analysis method with a trimming model. Processing data using IBM SPSS 25 tools. The results of this study indicate Macroeconomics simultaneously affects Third-Parties Funds. Partially, the BI Rate, GDP, and IHSG have an effect on Third Party Funds seen from the probability value 0.000 <0.05, where only inflation does not affect Third-Parties Funds. Meanwhile, the macroeconomy simultaneously influences the profit-sharing where the effect partially shows that inflation, the BI Rate, IHSG and Third-Parties Funds have a significant effect on profit-sharing financing. From the above findings, the macroeconomy indirectly through Third-Parties Funds is better for profit-sharing financing, because the ups and downs of Third Parties Funds significantly affect profit-sharing financing in Islamic banking.

Optimization of Profit-Sharing Financing at Islamic Banking in Indonesia

“…In other words, the faster rate of economic growth has actually slowed down the growth rate of financing. Although these results differ from the research of Ayyubi et al (2017), Anwar et al (2020) and Hafizh et al (2020), but this is one separate finding. There are several logical reasons that can be expressed from this finding, one of which is the preference of Islamic bank customers towards the types of financing in Islamic banks.…”

“…At this time, inflation will not have a changing impact on profit-sharing financing. This result is in line with the research of (Hafizh et al, 2020), but not in line with the research of Priyanto et al (2016) and Nastiti & Kasri (2019). The level of inflation will not reduce or increase the growth of profit-sharing financing.…”

“…This indicates that an increase in a country's economic growth will be followed by an increase in profit-sharing financing in that country. As stated by Ayubi et al (2017), Hafizh (2020) and Anwar et al (2020) that economic growth has a positive impact on the growth of profit sharing financing. From the above thinking, the fifth hypothesis of this study is proposed.…”

“…Many factors can influence banks in channeling their financing, both internal and external factors. There are several ways to identify factors that can affect profit-sharing financing as has been done by previous researchers, including the influence of mudharabah deposits (Kiswanto, 2013;Pramono, 2013;Riyanto, 2016), the influence of non-performing financing (Arnan & Kurniawasih, 2014;Kurniawanti & Zulfikar, 2014;Annisa & Yaya, 2015;Destiana, 2016;Jamilah, 2016;Kalkarina et al, 2016;Riyanto, 2016;Murni et al, 2018;Ispad, 2019;Nastiti & Kasri, 2019), equivalent rate (Kiswanto, 2013;Pramono, 2013;Kurniawanti & Zulfikar, 2014;Riyanto, 2016), efficiency (Jamilah, 2016;Nastiti & Kasri, 2019), economic growth (Ayyubi et al, 2017;Anwar et al, 2020;Hafizh et al, 2020) and inflation (Priyanto et al, 2016;Nastiti & Kasri, 2019;Mubarok et al, 2020).…”

Effectiveness of Islamic Monetary Policy Transmission on Inflation and Economic Performance

“…Previous studies have depicted that interest rates or profit sharing could affect the output gap and inflation (Umar & Putri, 2013). In a similar direction, we would say that profit sharing has an influence on the economic performance (Doucouliagos et al, 2020;Hafizh et al, 2020). Hence, this study proposes the following hypothesis.…”