Islamic Rural Banks Research Articles

Micro, Small and Medium Enterprises Financing in Islamic Rural Banks in Indonesia

Purpose: Purpose of this paper to analyze relation between internal factorsconsist of CAR, ROA, ROE, NPF, BOPO and external factors consist of Inflation, Interest rate, exchange rate that influence Islamic Rural Bank financing to Small Medium Enterprises.Design/Method/Approach: This paper use financing SME data from Islamic Rural Bank, internal and external factor from Islamic Rural Bank in 2010-2018. The paper use vector autoregression if stasioner in level an use vector error correction model of stasioner and cointegration in first difference. Use IRF and VD analysis to predict in the future.Findings: Results indicate that inflation, interest rate, NPF and BOPO have long term effect in SME financing an in short term only NPF influencing in SME financing.Originality/Values: Islamic finance industry one of industry that very important, this paper adds to understand Islamic finance industry which has received limited attention. Novelty in this paper use SME financing in Islamic rural bank, inflation, exchange rate, interest rate.

Determinants of Indonesian Islamic Rural Banks’ Profitability: Collusive or Non-Collusive Behavior?

Determinants of Indonesian Islamic Rural Banks’ Profitability: Collusive or Non-Collusive Behavior?

FINANCING DISTRIBUTION, FINANCING TO DEPOSIT RATIO (FDR) AND NON PERFORMING FINANCING (NPF) ON PROFITABILITY OF THE ISLAMIC RURAL BANKS IN BANTEN PROVINCE

This study aims to determine empirical evidence about the effect of profit sharing financing, sale and purchase financing, FDR and NPF on the profitability (ROA) of Islamic Rural Banks (BPRS) in Banten Province. The type of data in this study is secondary data using panel data. The research object was five Islamic Rural Banks in Banten Province and research period from the first quarter to the fourth quarter of 2013-2019. The research sample was selected using purposive sampling technique. The analysis method used is Panel Data Regression Analysis with Eviews 10 software. The results obtained in this study indicate that there is no significant influence between the Profit Sharing variable on Profitability (ROA) partially. Sale and Purchase Financing, FDR, and NPF variables partially have a significant effect on profitability (ROA). Simultaneously, Profit Sharing, Sale and Purchase Financing, FDR, and NPF have a significant effect on Profitability (ROA).

Does market structure matter for Islamic rural banks' profitability?

This study investigates the impact of the market structure including bank-specific factor and macroeconomic conditions on profitability of Islamic rural banks in Yogyakarta and Central Java provinces. We employ the Structure Conduct Performance (SCP) and Relative Market Power (MRP) hypothesis using static and dynamic panel data regression over the periods 2013Q1- 2018Q4. Diagnostic tests obviously confirm that the dynamic panel regression is more appropriate in estimating profitability because of the dynamic behavior of profitability, instead of the static panel regression. Based on the Concentration Ratio (CR) and the Herfindahl-Hirschman Index (HHI), both provinces face imperfect competition market. Market share positively affect profitability but market concentration has no impact on profitability. The results clearly show that our study supports the RMP hypothesis but fail to confirm the SCP hypothesis. Some control variables such as the level of efficiency and financing rate also affect profitability. A high level of operating efficiency increases more profits and low non-performing financing produce more profits. Our findings suggest that improving operating cost eventually is the key in capitalizing the power of market share. JEL Classification : G21, G24 DOI: https://doi.org/10.26905/jkdp.v24i4.4810

The Importance of Promotion Costs and Training Costs for Islamic Rural Bank in Indonesia by BPRudent

This research tested the influence of Islamic Rural Bank promotion cost and training cost towards Islamic Rural Bank profitability in Indonesia. Research variable used promotion cost and training cost which were allocated by Islamic Rural Bank, while profitability used proxy Return on Asset (ROA). This research is explanatory research by using quantitative approach. Sampling technique conducted was quota sampling and it found 4 Islalmic Rural Bank in Indonesia period 2013-2017. Finding indicated that there was no influence promotion cost and training cost towards profitability of Islamic Rural Bank in Indonesia. Regression analysis conducted showed that Islamic Rural Bank could optimize education cost and training cost based on each division of Islamic Rural Bank and maximize promotion cost to introduce product and service in appropriate segment of long term so that each Islamic Rural Bank in Indonesia can present their company's performance to the maximum on the BPRudent Platform

The Relationship Between Capital Structure and Performance in Islamic Rural Bank

The source of Islamic banking capital must avoid interest as the vision and mission that relies on al-Quran and hadith. The capital structure is important for financial institutions, including Sharia Rural Bank (BPRS). However, BPRS has a problem that is the limited capital owned so that it affects performance. This paper's main objective is to investigate the relationship between capital structure and performance of the Islamic Rural Banks (BPRS) in Indonesia. The study using panel data regression to measure the capital structure on performance. The research sample used 164 BPRS that operate in 33 provinces from 2010 until 2017. The results show that capital structure affects DER (debt to equity ratio) and DAR (debt to asset ratio) but negatively affects ETA (equity to total Asset ratio). These findings indicate an increase in the capital structure of the performance of the BPRS in Indonesia. Hence, bank managers must reach a trade-off between the advantages and disadvantages of creating liquidity and consider the negative relationship between liquidity creation and bank performance when making decisions.

Analisis Kepatuhan Syariah pada Bank Syariah: Studi Kasus Bank Pembiayaan Rakyat Syariah

Sharia compliance is the adherence of Islamic banks to Islamic rules or laws in muamalah and is one of the factors that differentiate it from conventional banks. Therefore sharia compliance is a fundamental principle in Islamic banking practices. Muamalah law, especially the economy, has a high degree of difference, so the sharia compliance standards in Indonesia refer to the Fatwa of the National Sharia Council-Indonesian Ulama Council (DSN-MUI). This study aims to analyze the practice of sharia compliance in Islamic Rural Banks (BPRS) in Indonesia. The data analyzed is the assessment of the Sharia Supervisory Board (DPS) on the practice of BPRS for five years. The sample distribution covers all regions of Indonesia with 24 units of analysi with 46 respondenss. The data analysis used quantitative descriptive analysis and compared it with the DSN-MUI fatwa. This study's results indicate that the level of compliance with Islamic rural banks in Indonesia is, on average, excellent. Other findings show that, when viewed from the contract's practice, financing with a musyarakah contract has the highest level of sharia compliance compared to separate agreements. Meanwhile, the lowest sharia compliance is in the murabahah contract. This condition is influenced because Islamic banks often use the murabahah bil wakalah contract. The weakness of this contract lies in the procurement of goods by customers, often not accompanied by proof of purchase.

Analisis Kepatuhan Syariah pada Bank Syariah: Studi Kasus Bank Pembiayaan Rakyat Syariah

Sharia compliance is the adherence of Islamic banks to Islamic rules or laws in muamalah and is one of the factors that differentiate it from conventional banks. Therefore sharia compliance is a fundamental principle in Islamic banking practices. Muamalah law, especially the economy, has a high degree of difference, so the sharia compliance standards in Indonesia refer to the Fatwa of the National Sharia Council-Indonesian Ulama Council (DSN-MUI). This study aims to analyze the practice of sharia compliance in Islamic Rural Banks (BPRS) in Indonesia. The data analyzed is the assessment of the Sharia Supervisory Board (DPS) on the practice of BPRS for five years. The sample distribution covers all regions of Indonesia with 24 units of analysi with 46 respondenss. The data analysis used quantitative descriptive analysis and compared it with the DSN-MUI fatwa. This study's results indicate that the level of compliance with Islamic rural banks in Indonesia is, on average, excellent. Other findings show that, when viewed from the contract's practice, financing with a musyarakah contract has the highest level of sharia compliance compared to separate agreements. Meanwhile, the lowest sharia compliance is in the murabahah contract. This condition is influenced because Islamic banks often use the murabahah bil wakalah contract. The weakness of this contract lies in the procurement of goods by customers, often not accompanied by proof of purchase.

ANALISIS RISIKO DAN PENGEMBALIAN HASIL TERHADAP PEMBIAYAAN MUDARABAH PADA BANK PEMBIAYAAN RAKYAT SYARIAH (BPRS)

This study examines the risk and return that effect mudarabah financing at Islamic Rural Banks. The study uses the Value at Risk (VaR) method to measure risk and for Return using the Risk Adjusted Return on Capital (RAROC) method. The data used are secondary data were gathered from the 2016-2018 Monthly from Financial Reports that published on the Financial Services Authority website. The results of the analysis show that risk affects mudarabah financing, whereas the return of results does not affect mudarabah financing. Meanwhile, simultaneously it shows that the risk and return affect mudarabah financing financing at Islamic Rural Banks

Financing Risk in Indonesian Islamic Rural Banks: Do Financing Products Matter?

Financing Risk in Indonesian Islamic Rural Banks: Do Financing Products Matter?

The Effect of Capital Adequacy, Asset Quality, and Liquidity on the Financial Performance of Shariah Rural Bank in East Java

This study aims to analyze the effect of capital adequacy, quality of productive assets, and liquidity on financial performance. Financial performance is proxied by using Return On Assets (ROA). The population in this study is the Islamic Rural Bank (IRB) registered at Financial Services Authority. Sampling was conducted using purposive sampling method and total sample there are 100 samples. This research uses secondary time series data was published at official website www.ojk.go.id . The analytical method used is multiple linear regression by using SPSS 22 as tool to process the data and test the hypotheses. The result of this research indicate that capital adequacy has no significant effect on financial performance, while the quality of productive assets and liquidity has a significant effect on financial performance.

Analyzing The Performance of Indonesian Islamic Rural Banks: Does Bank Size Matter?

This paper aims to analyze the effect of bank size on performance of Indonesian Islamic rural banks. To achieve this objective, this study analyzes quarterly panel data of financial report from Indonesian Islamic rural banks from Q12011 to Q42016 with total 3,222 observations. Performance, as the dependent variable in this study, is measured by return on assets. Bank size, as the independent variable in this study, is measured by natural logarithm of total assets. In addition, this study also uses financing ratio, capital ratio, nonperforming financing, GDP growth rate and inflation rate as control variables. The result shows that the size has a positive and significant effect on performance in small banks. By examining the effect of bank size on performance of Indonesian Islamic rural banks, this study is expected to fill the gap in literature of Islamic financial institutions in Indonesia, especially the Islamic rural banks.

Peran Non Performing Financing terhadap Profitabilitas Bank Pembiayaan Rakyat Syariah dengan Inflasi sebagai Variabel Moderasi

<p><em>The research aims to examine the role of Non-Performing Financing (NPF) on the profitability of financing in Sharia Banks with inflation as a moderation variable. The population of this research is Islamic Rural Banks in West Sumatra Indonesia, which was registered in the Financial Services Authority (OJK) in the 2015-2018 period. Samples of research were taken purposively as many as seven units of Islamic Rural Banks which were spread in West Sumatra Indonesia. The data analysis technique used is a regression method with panel data (pooled data) which is a combination of cross section and time series data using Software Eviews8. The results of the analysis showed that Non-Performing Financing (NPF) has a negative effect on profitability, which is proxied by ROA. Furthermore, this research proves that the inflation does not moderate or weaken the influence of the NPF on the profitability of Islamic Rural Banks. This research contributes in expanding the direct relationship between NPF and profitability which in previous research was not elaborated further.</em><em></em></p>

ANALISIS TINGKAT EFISIENSI BANK PEMBIAYAAN RAKYAT SYARIAH (BPRS) PERIODE 2012-2018 MENGGUNAKAN METODE DATA ENVELOPMENT ANALYSIS (DEA)

The purpose of this study was to determine the level of efficiency of Islamic People's Financing Banks (Sharia Rural Banks) registered at the OJK during the 2012-2018 period. This study uses a quantitative approach. The data used are secondary data in the form of annual financial reports obtained from the websites of Bank Indonesia (BI) and the Financial Services Authority (OJK). This study uses a non-parametric approach to measure the stability of the level of efficiency of the Islamic People's Financing Bank (BPRS) with the Data Envelopment Analysis (DEA) method. The results of this study indicate that under the CRS assumption with an output-oriented average efficiency of the Islamic People's Financing Bank (BPRS) for the 2012-2018 period is 79 percent, while under the assumption of the output-oriented VRS the average efficiency of the Islamic People's Financing Bank (BPRS) is 85 percent which means that the Islamic People's Financing Bank during the 2012-2018 period still operates inefficiently. BPRS Harta Insan Karimah Parahyangan became the only Sharia People Financing Bank (BPRS) in Indonesia for the 2012-2018 period that was the most stable both under the VRS assumption.Keywords: Stability, Intertemporal Efficiency, Data Envelopment Analysis, Islamic Rural BankREFFERENCESArikunto, S. 2002. Metodologi Penelitian Suatu Pendekatan Proposal. Jakarta: PT. Rineka Cipta.Barzan, Bardawi. 1999. Psikologi Perkembangan Anak..Jakarta: Rineka Cipta.Chaplin,J.P. 1996. Kamus Besar Psikologi. Jakarta: Rajawali PressDepartemen Agama RI. 1993. Al-Qur’an Dan Terjemahannya.Departemen Sosial RI. 1999. Pedoman Perlindungan Anak. Jakarta: Direktorat Jendral Bina Kesejahteraan Sosial Anak Keluarga dan Lanjut UsiaMoleong,L.J.2010. Metodologi Penelitian Kualitatif. Bandung: Remaja Rosdakarya.Parker, Deborah,.2006. Menumbuhkan Kemandirian dan Harga Diri Anak. Jakarta: Prestasi PustakarayaSugiyono. 2012. Metode Penelitian Kuantitatif Kualitatif dan R&D. Bandung: Alfabeta.Yin, Robert. K, 2009, Studi Kasus; Desain dan Metode, Jakarta; Raja Grafindo Persada.Tjiptono, Fandy. 2006. Strategi Pemasaran. Yogyakarta: Andi Offset.Kotler, Philip. 2000. Manajemen Pemasaran di Indonesia: Analisis, Perencanaan, implementasi dan Pengendalian. Alih Bahasa, Susanto, A.B. Jakarta: Penerbit Salemba EmpatRangkuti,Freddy. 2013. Analisis SWOT : Teknik Membedah Kasus Bisnis. Jakarta : PT. Gramedia Pustaka UtamaUndang-Undang Nomor 23 Tahun 2002 tentang Perlindungan AnakDepartemen Sosial Republik Indonesia. 2004. Acuan Pelayanan Sosial Anak di Panti Sosial Asuhan Anak. Jakarta : Departemen Sosial Republik Indonesiawww.bps.go.id Ridwan S. Sundjaja dan Inge Barlian, 2002. Manajemen Keuangan Satu Edisi Keempat. Jakarta: Prenhallindo.Pearce II, John A. dan Robinson Richard B.Jr. 2008. Manajemen Strategis 10. Jakarta: Salemba Empat.Tarmidzi, Rosmiaty. 2010. Pendapatan Asli Daerah Berdampak Pada Kemandirian Keuangan Daerah. Jurnal Akuntansi dan Keuangan Vol. 1 No.1 Hal. 123-128.Halim, Abdul. 2007. Akuntansi Keuangan Daerah. Jakarta: Salemba Empat. Halim, Abdul. 2002. Manajemen Keuangan Daerah Bunga Rampai. Yogyakarta: UPP AMP YKPN Yogyakarta.

Financial performance of rural banks in Indonesia: A two-stage DEA approach

This study aims to analyze the efficiency performance of conventional and Islamic rural banks in Indonesia, specifically, Bank Perkreditan Rakyat (BPR) and Bank Pembiayaan Rakyat Syariah (BPRS). Using a DEA approach, the results indicate that both BPR and BPRS are still inefficient in terms of the intermediation role but are efficient in production. Furthermore, the Tobit estimation show that these two efficiency results are positively affected by location and the capital adequacy ratio (CAR). These rural banks operating in cities tend to have a higher level of efficiency than otherwise. Moreover, the higher the capital, the more efficient both Islamic and conventional rural banks in terms of production and intermediation.

Implikasi Tatakelola Islami Terhadap Fraud (Studi Pegawai BPRS di Soloraya)

This study aims to determine the implementation of Corporate Governance which is based on Islamic values does not rule out the possibility of fraud The Financial Services Authority (OJK) requests a supervisory license for a BPR/BPRS that is approved more than 10 times that of a commercial bank so that higher fraud can occur. Therefore a better supervision is needed from parties within the company to participate in reducing fraud. The sample in this study was 39 employees of the Islamic Rural Bank (BPRS) in Soloraya using convenience sampling and analyzed by statistical analysis using a multiple regression analysis. The results of this study are that the board of commissioners and internal control can reduce fraud, while the independence of the Sharia Supervisory Board (SSB) is not.

Financial Ratio to Financing in Indonesia Islamic Rural Bank Analysis

The purpose of this study is to analyze factors which influence financing in Indonesia Islamic Rural Bank. The data used are monthly financial report of Islamic Rural Bank (IRB) from 2014 to 2018. This study is using Vector Error Correction Model (VECM) to find the short and long term impacts and respons to the shock impact in each variable to financing. The results respresent that CAR, FDR, BOPO and DPK variables have a significant positive effect on financing in short term. Subsequently in the long term, CAR and NPF variables have a significant positive effect on financing. Meanwhile FDR and DPK variables have a significant negative effect on financing and the ROA variable has no significant effect on financing. Then, the financing response to shocks that occur in ROA, FDR and DPK is negative. While the financing response to shocks that occur in CAR is negative.

ANALISIS EFISIENSI BANK PEMBIAYAAN RAKYAT SYARIAH (BPRS) DI JAWA TIMUR MENGGUNAKAN DATA ENVELOPMENT ANALYSIS (DEA) PERIODE 2012-2018

Efficiency is needed by Islamic Rural Bank (BPRS)to facing rivalry in the banking sector. Efficiency can show the performance of BPRS and make BPRS more productive. This study measures the efficiency of Islamic Rural Banks (BPRS) in East Jawa using data envelopment analysis (DEA). DEA is a non-parametric and deterministic methodology for determining relative efficiency. This study used the intermediation approach and output orientation to measure the efficiency of BPRS. Inputs in this study are deposits, labor, and fixed assets. Outputs in this study are financing and other income. The result shows that the inefficiency exists in the BPRS in East Java. From 21 BPRS, which were used as a sample, 17 BPRS are not efficient technically. The inefficiency of BPRS causes BPRS still can not manage its inputs optimally to producing maximum output. To achieve an efficient level, BPRS needs to increase its output and reduce its input.Keywords: Islamic Rural Banks (BPRS), Efficiency, Performance, Data Envelopment Analysis (DEA)

ANALISIS KEPATUHAN SYARIAH PEMBIAYAAN MUSYARAKAH PADA BPRS AMANAH SEJAHTERA GRESIK

The background of this research is the growth and development of the Islamic economy in Indonesia these days. It can be seen from the number of Islamic Financial Institutions that have emerged lately and offered products that are free of usury. Thus, citizens’ perceptions of Islamic banks and conventional banks are the same. Meanwhile, to carry out its operations, sharia financial institutions must follow Islamic law (Sharia law), which are regulated in the DSN-MUI Fatwa and supervised by the Sharia Supervisory Board. From the phenomenon above, the writer wants to raise the theme of sharia compliance in sharia financial institutions namely musyarakah financing in Islamic Rural Banks. This study uses qualitative descriptive analysis, a case study approach. The object of this research is the Islamic rural bank (BPRS) Amanah Sejahtera Gresik. To examine the compliance of the musyarakah contract, the author uses the Fatwa of the National Sharia Council of the Indonesian Ulema Council (DSN-MUI Fatwa) No.08/DSN-MUI/IV/2000 as its reference. The results show that the BPRS Amanah Sejahtera Gresik has been operating the Musyarakah Financing following the applicable DSN-MUI Fatwa rules. In addition to that, besides seeking profits, BPRS also preaches Islamic economics. From the sharia principles that have been carried out by the BPRS, the purpose of maqashid sharia is fulfilled.Keywords: Sharia Compliance, Musyarakah, BPRS Amanah Sejahtera, DSN-MUI Fatwa, Maqashid Sharia.

Strategi Pencegahan Pembiayaan Bermasalah pada BPRS di Kabupaten Bogor

Financing is channeling funds carried out by Islamic banks, such as Islamic rural banks (BPRS). Risk arising from financing is default risk assessed by the ratio of Non Performing Financing (NPF). BPRS in the area of Kabupaten Bogor have NPF values above the safe limit set by Bank Indonesia. The purpose of this study is to identify the causes and solutions of default financing and formulate strategies for preventing default financing of BPRS in Kabupaten Bogor. The method used in this study is Analytic Network Process (ANP). The total respondents in this study are five. The result showed that external cause is the most influential factor towards the occurrence of default financing. The most influential external cause is customer's bad intention. External solution is the priority solution that need special attention. The priority external solution is strengthening the analysis. The most influential internal cause is adverse selection. Internal solution that is prioritized is training for finance officers. The priority of the default financing prevention strategy in this study is formulating financing risk mitigation.