Proceedings of the 19th International Symposium on Management (INSYMA 2022)

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Financing Scheme and Determinant Factors

A Case Study of Islamic Rural Banks in Indonesia

Authors
Sutrisno1, *
1Universitas Islam Indonesia, Yogyakarta, Indonesia
*Corresponding author. Email: sutrisno@uii.ac.id
Corresponding Author
Sutrisno
Available Online 5 December 2022.
DOI
10.2991/978-94-6463-008-4_4How to use a DOI?
Keywords
Profit margin financing; profit-sharing financing; non-performing financing; Capital adequacy ratio
Abstract

This study aims to examine the factors that influence the financing scheme of Islamic Rural Banks (IRBs) in Indonesia. The financing scheme consists of profit margin financing (PMF) and profit-sharing financing (PSF). Factors thought to influence the financing scheme are non-performing financing (NPF), financing to deposit ratio (FDR), capital adequacy ratio (CAR), return on assets (ROA), operating to income ratio (OEIR), and company size (Size). The population in this study was 163 IRBs in Indonesia with a sample of 100 IRBs. The observation period was 4 years, with quarterly data. Hypothesis testing applied multiple regression. The results show that the factors influencing the financing scheme between PMF and PSF are the same, namely, NPF and Size have a significant negative effect, while FDR, CAR, ROA and OEIR have no effect. One variable is OEIR; if the significance level is 10%, then OEIR has a significant and negative effect on the profit-sharing financing scheme, but the profit-margin financing scheme has no effect.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 19th International Symposium on Management (INSYMA 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
5 December 2022
ISBN
978-94-6463-008-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-008-4_4How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Sutrisno
PY  - 2022
DA  - 2022/12/05
TI  - Financing Scheme and Determinant Factors
BT  - Proceedings of the 19th International Symposium on Management (INSYMA 2022)
PB  - Atlantis Press
SP  - 18
EP  - 27
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-008-4_4
DO  - 10.2991/978-94-6463-008-4_4
ID  - 2022
ER  -