Structure of Third Party Funds, Financing Composition and Non Performing Financing on Islamic Banking Financial Performance

Buchory, Herry Achmad

doi:10.1166/asl.2017.9980

Cited by 7 publications

(6 citation statements)

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“…Damanhur et al (2018) said that the increase of assets of Islamic banks had an impact on increasing loans and subsequently it tends to increase NPF. Credit is the main assets for banks, thus the enhancement of NPF will also have the impact on reduction of the bank revenue (Anggraeni, 2016;Buchory, 2017;Husni & Rahim, 2017;Kusmayadi, Badruzaman, & Firmansyah, 2017). The decrease of bank income could give effect to the bank assets reduction through both decreased capital and fund that the Islamic banks may collect (third party funds).…”

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confidence: 99%

“…While internal variables are used to predict NPF are CAR, NIM, FDR, and third-party fund (TPF) as used by Said & Ali (2016), Setiawan & Bagaskara (2016), Buchory (2017), and Laryea, Ntow-Gyamfi, & Alu, (2017) in their research. Meanwhile, Alandejani & Asutay (2017) and Mustafidah & Mukhibad (2018) used the type of financing and the GCG mechanism in predicting NPF.…”

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confidence: 99%

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Financial Performance Determinant of Islamic Banking in Indonesia

Mukhibad

Khafid

2018

Jurnal Keuangan Dan Perbankan

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The rapid growth of Islamic banks also occured in Indonesia. The high growth of Islamic banks' assets gave opportunities to increase bad debt (non-performing financing). We examined the impact of good corporate governance (GCG), number of sharia supervisory board (SSB), financing to deposit ratio (FDR), profit and loss sharing (PLS) financing ratio, profit sharing rate of financing, and temporary syirkah fund ratio on the performance of non-performance financing (NPF) and return on assets (ROA). This research also tested the influence of NPF on ROA. The population of this research was Islamic commercial banks in Indonesia with the observation ranged from 2009-2016. The samples were determined by using a purposive sampling method. Data analysis used a structural equation model with WarpPLS. We proved that empirically GCG disclosure did not affect NPF. NPF bank was influenced by PLS financing and temporary syirkah fund ratio. PLS financing income and FDR financing did not affect the NPF. Moreover, GCG, SSB, temporary syirkah fund, and NPF disclosures influenced profitability AbstrakPesatnya pertumbuhan bank syariah juga terjadi di Indonesia. Pertumbuhan aset bank syariah yang tinggi memberikan peluang terjadinya peningkatan kredit macet (nonperforming financing). Kami menguji pengaruh Good Corporate Governance (GCG), jumlah dewan pengawas syariah (DPS), Financing to Deposit Ratio (FDR), rasio pembiayaan Profit and Loss Sharing (PLS), tingkat pendapatan bagi hasil pembiayaan, dan rasio dana syirkah temporer terhadap kinerja Non Perfomance Financing (NPF) dan Return On Assets (ROA). Selain itu, penelitian ini juga menguji pengaruh NPF terhadap ROA. Populasi penelitian adalah bank umum syariah di Indonesia dengan tingkat pengamatan dari tahun 2009-2016. Sampel ditentukan dengan metode purposive sampling. Analisis data yang digunakan adalah structural equation model dengan WarpPLS. Kami membuktikan secara empiris bahwa pengungkapan GCG tidak memengaruhi NPF. NPF bank dipengaruhi oleh PLS financing dan syirkah dana temporer ratio. Pendapatan dari pembiayaan PLS dan FDR tidak mempengaruhi NPF. Pengungkapan GCG, SSB, dana syirkah temporer dan NPF memengaruhi profitabilitas.

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confidence: 99%

Section: |mentioning

confidence: 99%

Financial Performance Determinant of Islamic Banking in Indonesia

Mukhibad

Khafid

2018

Jurnal Keuangan Dan Perbankan

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“…Whereas some of the results of previous studies show different results, such as those conducted by (Erna, Naelati, & Azmi, 2020) which state that third party funds do not have a significant effect on ROA of Islamic Commercial Bank Profitability in Indonesia during 2012-2018. Then, (Buchory, 2017) states that partially the structure of third-party funds (STPF) has a negative and significant effect on the measure of profitability with a net interest margin (NIM). Likewise, according to (Aslam, 2016), saving is a factor that does not have a significant effect on ROA and ROE, and savings have a negative effect on ROA and ROE.…”

Section: The Effect Of the Third-party Funds Structure (Tpfs) On Return On Asset (Roa)mentioning

confidence: 99%

Analysis of Funding Strategy, Credit Performance, and Banking Profitability. (Case Study of CIMB-NIAGA Bank in Indonesia)

Buchory¹

2021

EEA

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This study is to analysis funding strategy and credit performance, and its effect on Banking Profitability. The indicator of funding strategy measured with the ratio of time deposits with a total of third-party funds (DTPF) or a third-party fund structure (TPFS), credit performance measured by credit growth (CG) and non-performing loans rate (NPL), while banking profitability with return on assets (ROA).The descriptive and verification methods with the quantitative approach will be used in this research. Secondary data sources are from the quarterly published financial statements of the CIMB Niaga Bank in Indonesia of 2012 – June 2020 period, and multiple regression used for data analysis. The study results found TPFS partially has a negative but not significant effect on ROA. CG partially has a positive but not significant effect on ROA while NPL partially has a negative and significant effect on return on assets. Simultaneously TPFS, CG and NPL have a significant effect on ROA. The ROA is influenced by TPFS, CG, and NPL of 71.2% while the remaining 28.8% is influenced by other factors.

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“…By looking at the NPF ratio, it can be seen how much problem financing is compared to all financing provided by Islamic Banks. If the NPF ratio increases, the growth of Islamic bank assets can decrease (Buchory, 2017;Muksal, 2018). If the NPF in Islamic banks is getting bigger, then the bank must provide a larger Provision for Earning Asset Losses (PPAP) which in turn will aggravate the bank's financial position (Mutawali et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Islamic Bank Asset Growth: Predictive Assessment Toward Dominant Variables Affecting

Dermawan

Hunainah

Suseno³

et al. 2021

JEBIS

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This study departs from asset growth in Islamic banks which has decreased in the last four years even though assets have increased every year. This research is structured to be the basis for making policies to increase the growth of assets of Islamic banks. The research design used is quantitative with the help of smart PLS ver.3.3. The number of samples is 94 people from a population of 123 employees of Islamic Banks Serang and Cilegon Branch Offices with supervisory positions and above. The sample selection in this study uses probability sampling, so that all branch offices of Islamic banks in Cilegon and Serang as well as all supervisory work units have the same opportunity to be selected as samples. The results indicate that the ones that have the biggest influence in increasing the growth of Islamic bank assets are the financing to deposit ratio and non-performing financing. This can be seen from the path coefficient value resulting from this study between financing to deposit ratio on asset growth has a coefficient value of 2.818 and non-performing financing on asset growth has a coefficient value of 3.767. Thus, both financing to deposit ratio and non-performing financing influence increasing the growth of assets of Islamic banks. The results of this study emphasize to bankers to maintain the quality of financing to remain smooth and avoid non-performing financing.

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Structure of Third Party Funds, Financing Composition and Non Performing Financing on Islamic Banking Financial Performance

Cited by 7 publications

References 0 publications

Financial Performance Determinant of Islamic Banking in Indonesia

Financial Performance Determinant of Islamic Banking in Indonesia

Analysis of Funding Strategy, Credit Performance, and Banking Profitability. (Case Study of CIMB-NIAGA Bank in Indonesia)

Islamic Bank Asset Growth: Predictive Assessment Toward Dominant Variables Affecting

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