ANALYSIS OF FACTORS THAT AFFECT THE FINANCING TO DEPOSIT RATIO (FDR) OF ISLAMIC BANKS IN INDONESIA

• Main Author: Tri Lestari, Lita
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/41670
• Institution: Institut Teknologi Bandung

Bank is a business body taking in funds from the community in the form of deposit and distributing it to the community in the form of credit and/or in other forms, in order to enhance people' living standard. In Indonesia, there are two types of banking, and Islamic Bank and Conventional Bank. Liquidity is one of the tools that detecting the health of a bank to fulfill their debt obligations repayment on time when their customers will withdraw their deposits again. Maintaining liquidity is one of the most important functions by banking institutions. The present study aimed to compare the liquidity of Islamic Bank and Conventional bank in Indonesia and to analyze the affecting factors. The data of the study were obtained from the Financial Services Authority (OJK), the data were the Islamic Bank and Conventional Bank trimonthly report in March 2008- December 2018. This study employed purposive sampling technique, the data were analyzed using panel data regression analysis. The result shows that there is a significant difference between the Islamic Bank and Conventional Bank liquidity. This study found that Non-Profit Financing (NPF) and Third Party Funds (DPK) significantly affects the liquidity of Islamic Bank and Capital Adequacy Ratio (CAR), Operating costs and operating earnings (BOPO) and Return on Asset (ROA) insignificantly affects Islamic Bank. With regard to the Conventional Bank, the study found that NPF, CAR, and DPK significantly affect its liquidity. This study found that BOPO and ROA did not affect the Conventional Bank. Based on this research Islamic Bank is expected to be better manage financing management themself by reducing the proportion of funds used for financing distribution and reducing financing expansion, but Islamic Banks must continue to pay attention to the element of prudence in channeling financing, so that the level of liquidity remains in a position in according with the provisions Bank Indonesia. If this is done, then the bank is expected to obtain profitability in line with expectations, while avoiding the risks that may occur and can reach a wider market share.