Financing Diversification and Profitability of Islamic Banking in Indonesia


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Title Financing Diversification and Profitability of Islamic Banking in Indonesia
Creator Prastiwi, Iin Emy
Anik, Anik
Subject diversification, profitability, Islamic banks

Description This study aims to determine the effect of Islamic bank financing diversification based on economic sectors and based on the type of use on profitability. This study uses financing data for Islamic Banks and Islamic Business Units in 2014-2018. The data in this study are the times series data. Data analyzed by used multiple linear regression analyses. This research provides that results that the HHI of diversification of Islamic bank financing based on the economic sector is positively related to increasing the profitability of Islamic banks. It means diversification of financing based on high economic sectors, has an impact on reducing the profitability of Islamic banks in Indonesia. While the HHI of diversification of financing by type of use give a significant influence in increasing the profitability of Islamic banks in a negative direction. If Islamic banking only focuses on channeling financing to the consumption sector, it can have an impact on decreasing profitability. So that Islamic banking needs to equalize the distribution of consumption to the working capital and investment sectors. The results of this study are interesting because it can be used as a reference for Islamic banking in determining the policy of diversification of financing to obtain high profitability with low risk.
Date 2021-01-18
Type info:eu-repo/semantics/article
Peer-reviewed Article
Format application/pdf
Source Jurnal Akuntansi dan Pajak; Vol 21, No 2 (2021): JAP VOL. 21 No. 02, Agustus 2020 - Januari 2021
Language eng
Rights Copyright (c) 2021 Jurnal Akuntansi dan Pajak

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