The Contribution of Profit-sharing Characteristics to the Performance of Islamic Banks

Islamic commercial banks are highly identic with the profit-sharing as a sharia banking basic operational system. The profit-sharing becomes a specific characteristic of sharia banks as well as a distinction from conventional banks. Hence, this study aims to examine if the profit-sharing characteris...

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Autor principal:	Syafiq Mahmadah Hanafi
Formato:	article
Lenguaje:	EN
Publicado:	IAIN Surakarta 2021
Materias:	islamic commercial banks’ performances mudaraba funding musharaka financing sharia banks’ characteristics Business HF5001-6182 Banking HG1501-3550
Acceso en línea:	https://doaj.org/article/72997d10629b49189c5a148c571fb66c
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spelling	oai:doaj.org-article:72997d10629b49189c5a148c571fb66c2021-11-24T01:57:54ZThe Contribution of Profit-sharing Characteristics to the Performance of Islamic Banks2503-42352503-424310.22515/shirkah.v6i1.378https://doaj.org/article/72997d10629b49189c5a148c571fb66c2021-04-01T00:00:00Zhttp://shirkah.or.id/new-ojs/index.php/home/article/view/378https://doaj.org/toc/2503-4235https://doaj.org/toc/2503-4243Islamic commercial banks are highly identic with the profit-sharing as a sharia banking basic operational system. The profit-sharing becomes a specific characteristic of sharia banks as well as a distinction from conventional banks. Hence, this study aims to examine if the profit-sharing characteristic contributes to the performances of Islamic commercial banks in Indonesia. This study employed time series data derived from the Financial Service Authority (OJK) using regression-mixed test and auto-regressive heteroscedasticity (ARCH). The results pointed out that the profit-sharing system for the lending of Musharaka had an impact on the performance of sharia banks; while the profit-sharing for the funding of Mudaraba did not support the hypothesis with negative coefficient. The results suggest that the profit-sharing characteristic provides contribution to the performance of Islamic commercial banks through the lending of Musharaka. These results further indicate that the profit-sharing characteristic performed by Islamic commercial banks is proven to be effective in improving their performances. This study’s results have an implication for Islamic commercial banks to strengthen their profit-sharing characteristics and improve the public trust toward sharia banking system.Syafiq Mahmadah HanafiIAIN Surakartaarticleislamic commercial banks’ performancesmudaraba fundingmusharaka financingsharia banks’ characteristicsBusinessHF5001-6182BankingHG1501-3550ENShirkah Journal of Economics and Business , Vol 6, Iss 1, Pp 52-65 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	islamic commercial banks’ performances mudaraba funding musharaka financing sharia banks’ characteristics Business HF5001-6182 Banking HG1501-3550
spellingShingle	islamic commercial banks’ performances mudaraba funding musharaka financing sharia banks’ characteristics Business HF5001-6182 Banking HG1501-3550 Syafiq Mahmadah Hanafi The Contribution of Profit-sharing Characteristics to the Performance of Islamic Banks
description	Islamic commercial banks are highly identic with the profit-sharing as a sharia banking basic operational system. The profit-sharing becomes a specific characteristic of sharia banks as well as a distinction from conventional banks. Hence, this study aims to examine if the profit-sharing characteristic contributes to the performances of Islamic commercial banks in Indonesia. This study employed time series data derived from the Financial Service Authority (OJK) using regression-mixed test and auto-regressive heteroscedasticity (ARCH). The results pointed out that the profit-sharing system for the lending of Musharaka had an impact on the performance of sharia banks; while the profit-sharing for the funding of Mudaraba did not support the hypothesis with negative coefficient. The results suggest that the profit-sharing characteristic provides contribution to the performance of Islamic commercial banks through the lending of Musharaka. These results further indicate that the profit-sharing characteristic performed by Islamic commercial banks is proven to be effective in improving their performances. This study’s results have an implication for Islamic commercial banks to strengthen their profit-sharing characteristics and improve the public trust toward sharia banking system.
format	article
author	Syafiq Mahmadah Hanafi
author_facet	Syafiq Mahmadah Hanafi
author_sort	Syafiq Mahmadah Hanafi
title	The Contribution of Profit-sharing Characteristics to the Performance of Islamic Banks
title_short	The Contribution of Profit-sharing Characteristics to the Performance of Islamic Banks
title_full	The Contribution of Profit-sharing Characteristics to the Performance of Islamic Banks
title_fullStr	The Contribution of Profit-sharing Characteristics to the Performance of Islamic Banks
title_full_unstemmed	The Contribution of Profit-sharing Characteristics to the Performance of Islamic Banks
title_sort	contribution of profit-sharing characteristics to the performance of islamic banks
publisher	IAIN Surakarta
publishDate	2021
url	https://doaj.org/article/72997d10629b49189c5a148c571fb66c
work_keys_str_mv	AT syafiqmahmadahhanafi thecontributionofprofitsharingcharacteristicstotheperformanceofislamicbanks AT syafiqmahmadahhanafi contributionofprofitsharingcharacteristicstotheperformanceofislamicbanks
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The Contribution of Profit-sharing Characteristics to the Performance of Islamic Banks

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