THE EFFECT OF MURABAHAH, MUSYARAKAH AND MUDHARABAH FINANCING TO THE PROFITABILITY LEVEL OF SHARIA COMMERCIAL BANKS IN THE 2015-2019 PERIOD

Abstract

Abstract –   The purpose of this study is to analyze the Effect of Murabahah, Musyarakah and Mudharabah Financing on Profitability Levels in Islamic Commercial Banks. The method used in this study is a quantitative method with secondary data. In this study, data were obtained from quarterly Islamic financing reports and quarterly reports of Return on Assets at the Financial Services Authority for the 2015-2019 period. Output data in this study were processed using the Stata application version 12.0. Based on statistical tests, this study shows that murabahah and musyarakah financing in Islamic banking do not have a significant positive effect on the profitability of Islamic banks, while mudharabah financing Islamic banking has a significant positive effect on the profitability of Islamic banks. The results of the study simultaneously show that murabahah, musyarakah and mudharabah financing have a positive and significant effect on the profitability of Islamic banks. Based on the results of the R Squared test, the magnitude of the influence of financing on the profitability of Islamic Banks is 74.32%.

 Keywords:  Murabahah, Musyarakah, Mudharabah, Profitability, Return on Assets