Mudharabah contract financing

Oct 13, 2025 by thesweetdesigns.com 68 views

The Effect of Third Party Funds, Capital Adequacy Ratio, Return on Asset, and Financing to Deposit Ratio on Mudharabah Affairs Financing at Sharia Commercial Banks in Indonesia (2012-2015)

Introduction

The growth of the Islamic banking industry in Indonesia has been significant over the past decade, with Sharia Commercial Banks playing a crucial role in providing sharia-compliant financial products to customers. One of the key products offered by these banks is the Mudharabah agreement, which is a profit-sharing contract between the bank and the customer. However, the success of this product depends on various factors, including the bank's ability to manage its resources effectively. This study aims to investigate the effect of third party funds (DPK), Capital Adequacy Ratio (CAR), Return on Asset (ROA), and Financing to Deposit Ratio (FDR) on the financing of Mudharabah agreements at Sharia Commercial Banks in Indonesia during the 2012-2015 period.

Research Variable

In this study, the independent variables analyzed were:

Third Party Funds (DPK): The amount of funds collected from the public by the bank, which is the main source of financing.
Capital Adequacy Ratio (CAR): Ratio that shows how well the bank meets its capital obligations, which is a bank health indicator.
Return on Asset (ROA): Ratio that shows how effective the bank is to use its assets to generate profits.
Financing to Deposit Ratio (FDR): Ratio that shows how well the bank is able to provide financing compared to the funds raised.

Meanwhile, the dependent variable studied is Mudharabah contract financing, which is one of the sharia financing products based on profit sharing between banks and customers.

Research Methods

This study uses the purposive sampling method to collect data. Secondary data obtained from the Jakarta Islamic Index (JII) which includes the 2012 to 2015 period. Using relevant data, the analysis is carried out to determine the relationship and influence between these variables.

Research Results

The results showed that simultaneously, DPK, CAR, ROA, and FDR had a significant influence on the mudharabah contract at Sharia Commercial Banks in Indonesia. However, when it was analyzed partially, only DPK and FDR had a significant effect on the mudharabah contract in the period under study. This shows that these two variables are very important in supporting mudharabah-based financing in Islamic banks.

Analysis and Explanation

The significant effect of DPK reflects the importance of liquidity in Islamic bank operations. The higher the DPK collected, the greater the bank's ability to channel financing, including the mudharabah contract. On the other hand, high FDR shows that banks are able to provide optimal financing compared to the funds raised, thus giving more confidence to customers to participate in the mudharabah contract.

Meanwhile, CAR and ROA did not show a partial significant effect. This could be caused by the conservative nature of Islamic banks in maintaining their capital health and focusing on financing in accordance with sharia principles, not just pursuing profitability. Although the CAR is important to maintain bank stability, in the context of mudharabah financing, the liquidity aspect (which is reflected in DPK and FDR) is more dominant.

Conclusion

This study confirms that in the context of sharia commercial banks in Indonesia, DPK and FDR have a major role in facilitating the financing of mudharabah contracts. The bank must try to increase the collection of third party funds and optimize the ratio of financing to deposits to improve the performance of the mudharabah contract which ultimately contributes to the growth of sharia economy. This study provides insight for policy makers and bank managers in the management strategy and development of sharia financing products in the future.

Implications of the Study

The findings of this study have several implications for policy makers and bank managers. Firstly, the study highlights the importance of liquidity in Islamic bank operations, particularly in the context of mudharabah financing. This suggests that banks should focus on increasing their collection of third party funds to improve their ability to channel financing. Secondly, the study shows that the Financing to Deposit Ratio (FDR) is a critical factor in determining the success of mudharabah financing. This implies that banks should optimize their FDR to provide optimal financing compared to the funds raised.

Limitations of the Study

This study has several limitations that should be noted. Firstly, the study only focuses on Sharia Commercial Banks in Indonesia and does not consider other types of Islamic banks. Secondly, the study only analyzes the effect of DPK, CAR, ROA, and FDR on mudharabah financing and does not consider other factors that may influence the success of this product. Finally, the study only uses secondary data obtained from the Jakarta Islamic Index (JII) and does not collect primary data from the banks.

Future Research Directions

This study provides several directions for future research. Firstly, future studies should consider other types of Islamic banks and analyze the effect of DPK, CAR, ROA, and FDR on mudharabah financing in these banks. Secondly, future studies should consider other factors that may influence the success of mudharabah financing, such as the bank's risk management practices and the customer's financial literacy. Finally, future studies should collect primary data from the banks to provide more accurate and reliable results.

References

[1] Jakarta Islamic Index (JII). (2012-2015). Jakarta Islamic Index.
[2] Bank Indonesia. (2012-2015). Financial Stability Report.
[3] Islamic Financial Services Board (IFSB). (2012-2015). Islamic Financial Stability Report.

Appendices

[1] List of Sharia Commercial Banks in Indonesia.
[2] Data Collection Form.
[3] Data Analysis Procedure.

Glossary

Mudharabah: A profit-sharing contract between the bank and the customer.
DPK: Third Party Funds, which is the amount of funds collected from the public by the bank.
CAR: Capital Adequacy Ratio, which shows how well the bank meets its capital obligations.
ROA: Return on Asset, which shows how effective the bank is to use its assets to generate profits.
FDR: Financing to Deposit Ratio, which shows how well the bank is able to provide financing compared to the funds raised.
Frequently Asked Questions (FAQs) on the Effect of Third Party Funds, Capital Adequacy Ratio, Return on Asset, and Financing to Deposit Ratio on Mudharabah Affairs Financing at Sharia Commercial Banks in Indonesia (2012-2015)

Q1: What is the main objective of this study?

A1: The main objective of this study is to investigate the effect of third party funds (DPK), Capital Adequacy Ratio (CAR), Return on Asset (ROA), and Financing to Deposit Ratio (FDR) on the financing of Mudharabah agreements at Sharia Commercial Banks in Indonesia during the 2012-2015 period.

Q2: What are the independent variables analyzed in this study?

A2: The independent variables analyzed in this study are:

Third Party Funds (DPK): The amount of funds collected from the public by the bank, which is the main source of financing.
Capital Adequacy Ratio (CAR): Ratio that shows how well the bank meets its capital obligations, which is a bank health indicator.
Return on Asset (ROA): Ratio that shows how effective the bank is to use its assets to generate profits.
Financing to Deposit Ratio (FDR): Ratio that shows how well the bank is able to provide financing compared to the funds raised.

Q3: What is the dependent variable studied in this research?

A3: The dependent variable studied in this research is Mudharabah contract financing, which is one of the sharia financing products based on profit sharing between banks and customers.

Q4: What is the research method used in this study?

A4: The research method used in this study is the purposive sampling method, where secondary data obtained from the Jakarta Islamic Index (JII) is used to analyze the relationship and influence between the independent variables and the dependent variable.

Q5: What are the findings of this study?

A5: The findings of this study show that simultaneously, DPK, CAR, ROA, and FDR have a significant influence on the mudharabah contract at Sharia Commercial Banks in Indonesia. However, when it was analyzed partially, only DPK and FDR had a significant effect on the mudharabah contract in the period under study.

Q6: What are the implications of this study?

A6: The implications of this study are that DPK and FDR have a major role in facilitating the financing of mudharabah contracts. The bank must try to increase the collection of third party funds and optimize the ratio of financing to deposits to improve the performance of the mudharabah contract which ultimately contributes to the growth of sharia economy.

Q7: What are the limitations of this study?

A7: The limitations of this study are:

The study only focuses on Sharia Commercial Banks in Indonesia and does not consider other types of Islamic banks.
The study only analyzes the effect of DPK, CAR, ROA, and FDR on mudharabah financing and does not consider other factors that may influence the success of this product.
The study only uses secondary data obtained from the Jakarta Islamic Index (JII) and does not collect primary data from the banks.

Q8: What are the future research directions?

A8: The future research directions are:

Future studies should consider other types of Islamic banks and analyze the effect of DPK, CAR, ROA, and FDR on mudharabah financing in these banks.
Future studies should consider other factors that may influence the success of mudharabah financing, such as the bank's risk management practices and the customer's financial literacy.
Future studies should collect primary data from the banks to provide more accurate and reliable results.

Q9: What are the references used in this study?

A9: The references used in this study are:

Jakarta Islamic Index (JII). (2012-2015). Jakarta Islamic Index.
Bank Indonesia. (2012-2015). Financial Stability Report.
Islamic Financial Services Board (IFSB). (2012-2015). Islamic Financial Stability Report.

Q10: What are the appendices used in this study?

A10: The appendices used in this study are:

List of Sharia Commercial Banks in Indonesia.
Data Collection Form.
Data Analysis Procedure.

Q11: What is the glossary used in this study?

A11: The glossary used in this study is:

Mudharabah: A profit-sharing contract between the bank and the customer.
DPK: Third Party Funds, which is the amount of funds collected from the public by the bank.
CAR: Capital Adequacy Ratio, which shows how well the bank meets its capital obligations.
ROA: Return on Asset, which shows how effective the bank is to use its assets to generate profits.
FDR: Financing to Deposit Ratio, which shows how well the bank is able to provide financing compared to the funds raised.