The Effect Of Debt-Based Financing And Equity-Based Financing On Islamic Banks Profitability In Indonesia

Wahyudi, Rofiul; Diniyya, Aulia Arifatu; Satyarini, Julia Noermawati Eka; Mutmainah, Lu’liyatul; Maulida, Sri

doi:10.28918/ijibec.v4i2.2771

Cited by 4 publications

(4 citation statements)

References 6 publications

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“…Islamic banks will benefit from equity-based financing of business profits obtained by the debtor by the contract that was agreed upon at the beginning. On the other hand, if the debtor suffers a business loss, the Islamic bank will also receive the impact of the debtor's failure (Wahyudi et al, 2020). This mechanism will be easy to implement, so the profits or losses obtained can be predicted.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Covid-19 Pandemic on the Soundness of Islamic Banks in Indonesia

SISWANTORO

2022

kunuz

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The purpose of this study is to answer the debate regarding the impact of the Covid-19 pandemic on the soundness of Islamic banks in Indonesia. In this study, the soundness of Islamic banking is measured using the RGEC method. The object of the research is focused on all Islamic banking companies operating in Indonesia with a total population of 14 companies. The data is the annual reports of the company in the period before and after the pandemic, namely the 2019 and 2020 periods. After the sample selection process was carried out, only 12 companies remained that met the criteria for further analysis. The data analysis technique used descriptive statistical analysis and different tests with paired sample t-test and Wilcoxon signed-rank test which had previously passed the normality test. The results showed that only the capital adequacy ratio indicator experienced significant differences before and after the Covid-19 pandemic in Indonesia, while the other three indicators showed no significant differences. This indicates that Islamic banking is still quite capable of overcoming the impact of the pandemic so that it does not have a serious effect on the soundness of Islamic banking.

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Section: Introductionmentioning

confidence: 99%

The Effect of Covid-19 Pandemic on the Soundness of Islamic Banks in Indonesia

SISWANTORO

2022

kunuz

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“…Risk is the perception of uncertainty about the severity and consequences of a threatening event (Moutinho, 1987;Wahyudi et al, 2020). Physical risk is the potential for a person's health to be threatened with illness and injury due to problems with the law, weather, hygiene, and disease (Foroudi et al, 2021).…”

Section: Fear Of Covid-19 and Destination Imagementioning

confidence: 99%

Effect of Fear of COVID-19 on Destination Image, Tourist Satisfaction, and Revisit Intention: Protection Motivation Theory Perspective

Ihwanudin

Hartini

Rahmandika

2023

j. Organisasi dan manaj.

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Purpose – This study examines the effect of fear of COVID-19, tourist satisfaction, and destination image on the revisit intention. Methodology – Data was collected through social media surveys to 370 total domestic tourist respondents. Then, the data was processed with IBM SPSS version 26 to describe demographics and SmartPLS 3.2.9 to test structural equation modelling between variables. Findings – This study showed that the fear of COVID-19 significantly affected destination image, tourist satisfaction and revisit intention. Novelty – This study has presented that health risks (COVID-19) are not a problem for domestic tourists when travelling. Thus, the threat of COVID-19 does not affect tourists' perceptions of destination image, tourist satisfaction, and revisit intention.

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“…It was also discovered that the banking staff's lack of knowledge in selecting, evaluating, and managing PLS project management could lead to 'bad financings'. Wahyudi et al (2020) examined 14 Islamic Commercial Banks in Indonesia from 2007 to 2018 and concluded that PLS financing could potentially lead to a bank's loss of profits, but at the same time, income from PLS financing has a more significant impact on profits than income from Non-PLS financing. Wahyudi et al (2019) also investigated the effects of PLS and Non-PLS financing on ROA and ROE and also use the Bank Size as a moderate variable concluding that Non-PLS financing has a significant negative effect on ROA and ROE, whereas PLS financing has no effect on ROA and ROE.…”

Section: Previous Literature On Financing and Profitability Of Islami...mentioning

confidence: 99%

The Impact of Productive and Consumptive Financings on Indonesian Islamic Banking Profitability: Markov Switching Dynamic Regression

Wahid,

Mawardi,

Al Mustofa

et al. 2023

JEBIS

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This study investigates the effect of Islamic bank financings on banks' profitability during two distinct periods, namely stable and unstable conditions. This study also examines the profitability tendencies of banks during the two periods mentioned. To answer these objectives, this study applies the Markov Switching Dynamic Regression technique to 173 monthly observations from the Islamic commercial banking industry from December 2007 to March 2022. In stable times, the results indicate that productive financing harms the profitability of Islamic banks. Productive financing entails greater credit risk and can raise principal-agent concerns, moral hazard, and adverse selection. Consequently, productive financing necessitates higher monitoring costs. In an unstable period, consumptive financing negatively affects Islamic bank profitability. The proportion of consumptive financing exceeds the proportion of productive financing. This then increases the risk of credit and default, especially during economic instability when many consumers request reconditioning and even restructuring of financings from the bank. In addition, the results indicate that the profitability of Islamic banking is anticipated to endure longer in stable regimes and to recoup more quickly from unstable or crisis regimes. The findings of this study will likely serve as references and materials for banking management decisions, particularly financing decisions during periods of economic stability and crisis. Islamic banking should prioritize consumer financing during periods of economic stability and increase the proportion of productive financing during periods of economic instability.

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The Effect Of Debt-Based Financing And Equity-Based Financing On Islamic Banks Profitability In Indonesia

Cited by 4 publications

References 6 publications

The Effect of Covid-19 Pandemic on the Soundness of Islamic Banks in Indonesia

The Effect of Covid-19 Pandemic on the Soundness of Islamic Banks in Indonesia

Effect of Fear of COVID-19 on Destination Image, Tourist Satisfaction, and Revisit Intention: Protection Motivation Theory Perspective

The Impact of Productive and Consumptive Financings on Indonesian Islamic Banking Profitability: Markov Switching Dynamic Regression

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