Research Article
The Role of Financing and Zakat on the Performance of Indonesian Islamic Banks
@INPROCEEDINGS{10.4108/eai.19-7-2022.2329724, author={Nur Hidayah and Wahyu Wastuti and Siti Sarah Nasution}, title={The Role of Financing and Zakat on the Performance of Indonesian Islamic Banks}, proceedings={Proceedings of the 3rd International Conference of Islamic Finance and Business, ICIFEB 2022, 19-20 July 2022, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICIFEB}, year={2023}, month={4}, keywords={mudharabahh musyarakah murabahahh zpr roa}, doi={10.4108/eai.19-7-2022.2329724} }- Nur Hidayah
Wahyu Wastuti
Siti Sarah Nasution
Year: 2023
The Role of Financing and Zakat on the Performance of Indonesian Islamic Banks
ICIFEB
EAI
DOI: 10.4108/eai.19-7-2022.2329724
Abstract
This study aims to examine the effect of financing schemes namely Mudharabahh, Musyarakah and Murabahahh and zakat on the performance of Islamic banks in Indonesia. In this study, the performance of the Islamic banks is measured by the profitability level, represented by Return on Asset (ROA). This study also measures the social function of the Islamic banks through the value of distributed zakat by the Islamic banks, measured by Zakat Performance Ratio (ZPR). The sample of this research is the Islamic banks registered in Financial Services Authority (OJK). This study uses the purposive sampling method and obtained 9 samples of Islamic banks for the study period of 2011-2020. It uses the panel data regression method through E-Views 8. The results of this study indicate that financing schemes with profit-loss sharing principles represented by Mudharabah and Musyarakah have negative significant effect on the profitability. Meanwhile, Murabahahh as the proxy of non-profit sharing has a positive significant effect on the profitability of the Islamic banks. Meanwhile, ZPR does not have significant effect on the profitability of the Islamic banks. It recommends that the performance of Islamic bank should have longer term dimensions to accurately measure the impact of longer term of financing and zakat investment.