Abstract
Financing is an important aspect of Islamic banking, because the main income of Islamic banks comes from financing. There are two main schemes in financing, namely profit margin financing (PMF) which is based on buying and selling, and profit sharing financing (PSF) which is based on customer profits. The purpose of this study is to determine the factors that influence the two financing schemes. In this study, the influencing factors consist of third party funds (TPF), financing risk as measured by non performing financing (NPF), liquidity risk as measured by financing to deposit ratio (FDR), capital as measured by capital adequacy ratio (CAR), and operating risk as measured by the operating expense to operating income ratio (EIR). The population of this research is Islamic banks in Indonesia totaling 13 banks with a sample of 6 Islamic banks. Test the hypothesis using panel data regeneration analysis. After testing the model, it turns out that the best model is the fixed effect model. The results showed that TPF had a positive effect on all financing schemes (PMF and PSF). EIR should also have a significant but negative effect on both financing schemes. Meanwhile, NPF and EIR had a negative effect on PMF but had no effect on PSF, and FDR had no effect on the two financing schemes.
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