The Variables that Affect Murabaha Financing in Islamic Commercial Banks (The Period of January 2014 to June 2016)

Abstract

Murabaha financing is a type of financing that dominates the financing contract on Islamic banking in Indonesia. This shows that financing on the basis of sale (murabaha) has a greater contribution than the financing of the basis for the profit and loss sharing (mudharaba and musyaraka). The purpose of this study is to determine the factors that affect the financing murabaha in the Islamic Commercial Banking in Indonesia by using variables Third Party Fund (DPK), Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Non Performing Financing (NPF) and Return on Assets (ROA). The population in this study is the performance of Islamic Commercial Banks in Indonesia in the period of January 2014 to June 2016. The data used in this research is secondary data and sample selection by using purposive sampling method. The analytical tool used in this research is multiple linear regression analysis at significantly the rate of 5%. The results of this study indicate that the variable DPK, CAR, FDR, NPF, and ROA simultaneously have an influence on murabaha. Coefficient determination test results show that the five independent variables affect the dependent variable amounted to 87.6% and the remaining 12.4% is influenced by other variables. Partially DPK, CAR, FDR, and ROA have a positive and significant effect on the financing murabaha. While the NPF has no influence on murabaha financing.