The Effect of Islamic Financing Schemes on Risk and Financing Performance in Islamic Banks in Indonesia

  • Ahmad Roziq Departement of Accounting, Faculty of Economics and Business, Universitas Jember, Jl. Kalimantan 37 Kampus Bumi Tegal Boto Kotak Pos 159 Jember 68121
  • Hari Sukarno Departement of Management Faculty of Economics and Business, Universitas Jember, Jl. Kalimantan 37 Kampus Bumi Tegal Boto Kotak Pos 159 Jember 68121


The purpose of this study is to prove the effect of the financing scheme on financing risk and financing performance in Islamic banks in Indonesia. This research applies a form of quantitative research with the type of explanatory research that aims to accept or reject hypotheses. The population in this study are Islamic banks in Indonesia. The data used in the study are secondary data in the form of financial ratios sourced from Islamic bank financial reports for 2015 to 2019. Data analysis techniques use partial least squares which are used to test the inner model and outer model. The results of the study found that the sharia financing scheme that uses the buying and selling system and the profit sharing system has a significant effect on the risk of financing. However, the sharia financing scheme that uses the lease system has no significant effect on financing risk. The results also found that financing risk has a significant effect on the performance of Islamic bank financing in Indonesia. The results showed that the management of Islamic banks must be able to manage buying and selling financing and profit-sharing and profit-sharing financing schemes carefully and minimizing the risk of financing.


Download data is not yet available.


Amalia, S., & Hapsari, A. A. 2009. Credit risk analysis based on mudharabah and musyarakah profit sharing funds based on profitability (ROA) of sharia foreign exchange commercial banks per quarter (2016-2017 period). ISEI Accounting Review, I (1), pp. 32–38.
Arfan, A., Saifullah, & Fakhruddin. 2016. Implementation of principles for profit sharing and risk management in financing products. Journal of Religious Social Research 214, 10(1), pp. 213–238.
Bashir, Abdel-Hameed M. 1999. Risk and Profitability Measures in Islamic Banks: The Case of Two Sudanese Banks. Journal of Islamic Economic Studies 6 (2):1-24
Darwin. 2020. The process of risk management implementation in murabaha financing at bprs hajj poor pandai sikek tanah datar district, provinsi sumatera barat. Journal of Economics, Finance, Investment, and Sharia (EKUITAS), 1(2), pp. 100–110.
Dayu, P. Q. 2015. Effect of capital adequacy level, liquidity, market risk, and credit risk on financial performance in conventional banks. E-Jurnal Universitas Negeri Padang, pp. 1–15.
Djuwaini, Dimyauddin. 2008. Introduction to Fiqh Muamalah. Cet. 1. Penerbit : Pustaka Pelajar Ctakan 1. Yogyakarta
Farida, & Dewi, F. 2016. The analysis of risk management on syariah banking in indonesia. Seminar Nasional dan The 3rd Call for Syariah Paper. 1. 164-174.
Firmansyah, I. 2015. Determinant of non performing loan: the case of islamic bank in indonesia. Bulletin of Monetary Economics and Banking, 17(2), pp. 241–258.
Ghozali, I. 2019. Partial least squares (concepts, techniques, and applications using the smartpls 3.0 edition 2 program). Badan Penerbit Undip, Semarang.
Hafidh, A. A. 2011. Analisis hubungan pengeluaran pendidikan dan pertumbuhan ekonomi dengan menggunakan pendekatan kausalitas granger. Journal of Economics & Education, 8 (November), pp. 124–141.
Harahap, A. S., & Siregar, S. 2020. Operational risk of islamic banking murabahah financing. National Seminar on Computer Technology and Science pp. 561–567.
Helfert, E, A. 1991. Technique of financial analysis, seventh edition, Homewood Illionis: Richard D. Irwin Inc.
Jensen, M. C. & Meckling, W. H. 1976. Theory of the firm: managerial. Journal of Financial Economics, 3, pp. 305–360.
Karim, A. 2004a. Islamic bank: fiqh and financial analysis, second edition, Jakarta: PT. Raja Grafindo Persada.
________. 2004b. Sharia economic optimism. Jakarta: Republika Online.
Kurnia, R. A. E., Sawarjuwono, T. & Herianingrum, S. 2017. Financing risk management to anticipate financial distress conditions in Islamic banks. Journal of Islamic Economics Lariba, 3(2), pp. 51–64.
Kurniawansyah, D. 2016. Profit Loss Sharing Funding and Financing of the Sharia Commercial Bank Profitability in Indonesia with Efficiency and Risk as Mediation. Journal of Accounting and Finance 18(1), pp. 1–26.
Kusumawati, R. 2010. The Effect of Leadership Characteristics and New Product Innovation on Company Performance to Achieve Sustainable Competitive Advantage, AKSES: Journal of Economics and Business, 5(9), pp. 53–64.
Lestari. 2017. Risk of Financing in Istishna Covenant at Islamic Commercial Banks. Journal of Adzkiya, Vol 2, No 1.
Mawardi, A. 2014. Effect of Murabahah Financing Against Profit Through Intervening Variable Problematic Financing of Sharia Commercial Banks in Indonesia Period 2009-2013, Jestt, 1(8), pp. 565–580.
Muhammad. 2002. Sharia Bank: Strength, Weakness, Opportunity, and Threat Analysis, Second Edition, Yogyakarta: Ekonesia Faculty of Economics UII.
______. 2005. Management of Sharia Bank. Unit Penerbit dan Percetakan (UPP) AMP YKPN. Yogyakarta
______. 2011. Management of Sharia Bank. Yogyakarta: UPP Sekolah Tinggi Manajemen YKPN
______. 2014. Islamic Banking : Ijarah and Conventional Leasing. Developing Country Studies, 4(9), pp. 126–130.
Mukhibad, H. & Khafid, M. 2018. Article history : Financial Performance Determinant of Islamic Banking in Indonesia. Journal of Finance and Banking 22(3), pp. 506–517.
Mulyadi. 2001. Balance Scorecard: Contemporary Management Tools For Multipliers
of Company Financial Performance. Salemba Empat. Jakarta.
Nizar, A. S. 2015. Musharka Financing for Poverty Alleviation in Pakistan. International Letters of Social and Humanistic Sciences, 37(January), pp. 71–81.
Nurhayati, S., & Wasilah. 2013. Sharia Accounting in Indonesia, Edition 3. Salemba Empat.
OJK. 2018. Indonesia Sharia Financial Development Report, pp. 1–106.
____. 2019. Sharia Banking Statistics as of November 2019
Rachman, D. 2015. Effect of Mudharabah and Murabahah Financing on Non-Performing Financing (NPF) (Case Study of Sharia Commercial Banks in Indonesia). Study and Accounting research, XII(1), pp. 19–38.
Ritzer, George & Douglas J.Goodman. 2003. Theories of Modern Sociology.
Jakarta : Kencana
Roziq, A. 2010. The Effect of Islamic Business Ethics on the Performance of Mudharabah Financing through Asymmetrical Information on Islamic Banks in East Java. JEAM, IX(1), pp. 56–69.
Roziq. 2020. Revealing of Financing with Profit Sharing and Islamization of Agency Theory. Jurnal Darussalam; Jurnal Pendidikan, Komunikasi Dan Pemikiran Hukum Islam Vol. XI, No 2:464-478. April 2020. ISSN: 1978-4767.
Rustam, B. R. 2013. Sharia Banking Risk Management in Indonesia. Jakarta: Salemba Empat.
Sabrina & Majid, M. S. A. 2019. Why is financing based on low-profit sharing in Islamic banking? (A Study Using a Grounded Theory Approach). Scientific Journal of Islamic Economics Students, 1(1), pp. 51–70.
Sagantha, F. 2020. Reviewing the performance of Islamic banks in Indonesia. Scientific Journal Of Reflection, 3(1), pp. 31–40. doi: 10.5281/zenodo.3597840.
Saleem, S. & Mansor, F. 2020. Exploring Compliance of AAOIFI Shariah Standard on Ijarah Financing: Analysis on the Practices of Islamic Banks in Malaysia. Journal of Risk and Financial Management, 13(2), p. 29.
Sari, D. W. & Anshori, M. Y. 2018. Effect of Murabahah, Istishna, Mudharabah, and Musyarakah Financing on Profitability (Study of Sharia Banks in Indonesia Period March 2015 - August 2016). Accounting and Management Journal, 1(1), pp. 1–8.
Sholihah. 2013. Analysis of the influence of inflation, GDP, financing deposit ratio, and return of profit and loss sharing financing against non-performing financing in sharia banking in indonesia. Thesis. UIN Sunan Kalijaga.
Srimindarti, C. 2006. Balanced scorecard as an alternative to measuring performance.
Sucipto. 2013. Measurement of Financial Performance, Jurnal Ekonomi & Bisnis, FE Universitas Sumatera Utara, Medan.
Sugiyono. 2016. Method of Quantitative -Qualitative Research and R&D. Bandung: PT Alfabet.
Susanti, S. & Azis, Y. M. 2018. Satisfaction drivers in sharia banking : comparison PLS-SEM and CB-SEM. International Journal of Research Publications, 10(1), pp. 1–10.
Waldelmi, I. & Masirun. 2018. Analysis of factors affecting consumer’s behavior on syariah Banking Products. IOP Conference Series: Earth and Environmental Science, 175(1).
Wold, H. 1974. Causal flows with latent variables. Partings of the ways in the light of NIPALS modelling. European Economic Review, 5(1), pp. 67–86.
Wulansari. 2019. Risk management of ijarah financing against customer financing returns (case study: BMT dana mentari muhammadiyah pasar pon). Skripsi, IAIN Purwokerto.
Yudha. 2018. Profit-sharing financing, sale and purchase financing and financing risk and profit margin at sharia banks. National Seminars and Call Papers: Management, Accounting, and Banking 2018, pp. 1090–1104.
Yumanita, A. D. 2005. Looking for solutions to low-profit sharing financing in indonesian sharia banking. Bulletin of Monetary Economics and Banking : 8-50. Jakarta: Bank Indonesia
How to Cite
ROZIQ, Ahmad; SUKARNO, Hari. The Effect of Islamic Financing Schemes on Risk and Financing Performance in Islamic Banks in Indonesia. IQTISHODUNA: Jurnal Ekonomi Islam, [S.l.], v. 10, n. 1, p. 17-34, apr. 2021. ISSN 2443-0056. Available at: <>. Date accessed: 12 apr. 2021. doi: