Effect of Profit Sharing, Inflation and Gross Domestic Product (GDP) to the Third Party Funds of Islamic Banking in Indonesia

• Main Authors: Reza Fetrian, Sri Herianingrum, Dr., SE., M.Si.
• Format: Article PeerReviewed
• Language: English; Indonesian
• Published: SAVAP International 2017
• Subjects: HB522-715 Income. Factor shares; HG1723 Bank stocks. Banking as an investment; HJ2351 Inflation and taxation
• Online Access: http://repository.unair.ac.id/64885/1/Sri%20Herianingrum_%20Karya%20Ilmiah%20Tambahan%20003_ERInt.2017-6.2-08.pdf; http://repository.unair.ac.id/64885/2/Sri%20Herianingrum_Peer%20Review%20Tambahan003.pdf; http://repository.unair.ac.id/64885/; http://erint.savap.org.pk/vol6n2.html
• Institution: Universitas Airlangga

As an financial institution, bank is so depend on the ownership of funds. That funds not only from the bank itself as capital inclusion, but also from the customers of bank who give their funds as capital inclusion. The funds from the customers is called with The Tird Party Funds. Now, The tird party funds is to be main source for the banking to receive many of funds for their performance supporting. In the collecting process of the tird party funds, there are factors that effected capital measurement. Internal factors of bank to be points affected, like the profit sharing measurement. External factors are also to be points affected, such as conditional of financial in the nation that indicated by inflation, Gross Domestic Product (GDP), and etc. This research aim to know about effect of profit sharing, inflation, and gross domestic product to the tird party funds of islamic banking in Indonesia during 2011-2015. The results of this research showed that Profit Sharing has no effect on deposit growth during 2008-2015 period with a supporting reason by Farizi and Riduwan (2016) in their research that the motivating factor to get high returns do not become the main basis in choosing Islamic banks, but rather to conformity with sharia and proves that the results did not affect the growth of islamic banks’ fund, because the religious is a major factor to be the reason customers keep their funds in islamic banks (characters of islamic banks’ customers are emotional customers or non profit oriented); Inflation is significantly effect on growth in deposits in Islamic banking during the 2008-2015 period; Gross Domestic Product (GDP) effect on islamic banks’ deposits during the 2008-2015 period.