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Comparative Analysis of Profit Sharing Financing Between Islamic Banks (BUS) and Islamic Rural Bank (BPRS) in Indonesia

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Listed:
  • Sa'adah Yuliana

    (Department of Economic Development, Universitas Sriwijaya, South Sumatera, Indonesia,)

  • Suhel

    (Department of Economic Development, Universitas Sriwijaya, South Sumatera, Indonesia,)

  • Abdul Bashir

    (Department of Economic Development, Universitas Sriwijaya, South Sumatera, Indonesia.)

Abstract

This study is a comparative empirical studies that discuss the distribution of funds in Islamic Banking that use contract profit-sharing. Specifically, this study aimed to analyze the differences in the average funding for Mudharabah results with profit sharing financing Musharaka agreement on the BUS and the BPRS. The data used secondary data with the period from July 2012 to July 2016. The study found that there is a significant difference between the average profit sharing financing using Mudharabah and Musharaka contract extended by BUS or distributed by the BPRS. The average funding channeled by BUS with Musharaka contract value is higher than its threefold Mudharabah financing. Average Musharaka financing disbursed by BPRS, higher value quadrupled funding channeled with Mudharabah.

Suggested Citation

  • Sa'adah Yuliana & Suhel & Abdul Bashir, 2017. "Comparative Analysis of Profit Sharing Financing Between Islamic Banks (BUS) and Islamic Rural Bank (BPRS) in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 266-270.
  • Handle: RePEc:eco:journ1:2017-02-36
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    References listed on IDEAS

    as
    1. K.K. Siraj & P. Sudarsanan Pillai, 2012. "Comparative Study on Performance of Islamic Banks and Conventional Banks in GCC region," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 2(3), pages 1-6.
    2. Mukdad Ibrahim, 2015. "A Comparative Study of Financial Performance between Conventional and Islamic Banking in United Arab Emirates," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 868-874.
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    Cited by:

    1. Suhel Suhel & Imam Asngari & Mardalena Mardalena & Sri Andaiyani, 2018. "The Economic Scale of Small-Medium Enterprises Financing in Sharia Banking," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 112-117.

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    More about this item

    Keywords

    Islamic Banks; Financing Analysis; Mudharabah; Musharaka;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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