The Impact Of Islamic Financing Products On Islamic Banks Profitability: Case Of Al Rayan Bank (Qatar)
Total Views: 208
DOI:
https://doi.org/10.33102/jmifr.522Keywords:
Islamic banks, Murabaha, jarah, Musharaka, Istisna’a,, Profitability (ROE)Abstract
This study aims to determine the effect of islamic financing products on Islamic banks profitability of Al Rayan Islamic Bank. This research uses Quarterly data of Al Rayan Bank for 2011Q1-2023Q1.The variables used in this study are independent variables, Musharaka, Murabaha, Istisna’a and Ijarah financing. While the dependent variable is, the Islamic bank's profitability measured by (ROE).The study used ARDL Model to analyze the short and long-term relationships between variables. Data collected were analyzed by using EViews10 software. ARDL bounds test findings shown that there is a cointegration relationship between bank profitability and Islamic financing Products variables in the long run. The results of the long-run analysis show that Musharaka financing has a positive and significant effect on ROE at the 5% level. Murabaha financing has a negative and significant effect on ROE. Meanwhile, the Istisna’a and Ijarah variables have no significant effect on ROE. The short run dynamics show that there is a negative and significant effect of Murabaha and Ijarah financing on the profitability of the Islamic bank, while lagged value of Murabaha LMUR(-1) has a positive and significant effect on the profitability index of the Islamic bank. Simultaneously, there is no relationship and effect of Musharaka and Istisna’a on the profitability of the Islamic bank in the short term
Downloads
References
Afrizal, Y., Aliamin, & Shabri. (2023, March 3). The Effect of Musyarakah Financing, Mudharabah Financing, and Murabahah Financing on the Financial Performance of Sharia Commercial Banks in Indonesia. JOURNAL OF WORLD SCIENCE, 2(3), pp. 619-625. https://doi.org/10.58344/jws.v2i3.235
Atal, N., Iranmanesh, M., Hashim, F., & Foroughi, B. (2020). Drivers of intention to use Murabaha financing: religiosity as moderator. (E. P. Limited, Ed.) Journal of Islamic Marketing, 13(3), pp. 740-762. https://doi.org/10.1108/JIMA-07-2019-0147
BHATTA, S., ADHIKARI, P., & BYANJANKAR, R. (2020). Choice of Regression Models in Time Series Data. Economic Journal of Development, 29 & 30(1-2). https://doi.org/10.3126/ejdi.v30i1-2.46058
Hussain, M., Shahmoradi, A., & Turk , R. (2015). An Overview of Islamic Finance. Washington: International Monetary Fund .
Ismawati, Alfira , Y., & Kamaruddin. (2021). The Effect of Murabahah and Mudharabah Financing on Profitability with NonPerforming Financing (NPF) as a Moderating Variable. International Journal of Islamic and Social Sciences, pp. 65-71.
Jaurino, & Wulandari, R. (2017). the 3 Parahyangan International Accounting and Business Conference (PIABC). The Effect Of Mudharabah And Musyarakah On The Profitability Of Islamic Banks (pp. 69-84). bandung indonesia: Accounting Department of the Faculty of Economics of Parahyangan Catholic University. Retrieved from https://journal.unpar.ac.id/index.php/piabc/article/view/2457/2172
Kennedy, P. (2019, May to June). Can ROE Predict PER? International Journal of Science and Management Studies, 2(3), pp. 83-85.
Khan, M. (2011). Islamic Banking Practices: Islamic Law and Prohibition of Riba. 50 (3/4), 413-422. Islamic Studies, 50(3/4), pp. 413-422.
Manaseer, S., & Alslehat, Z. (2016). The Impact of Financing Revenues of the Banks on their Profitability: An Empirical Study on Local Jordanian Islamic banks. European Journal of Business and Management, 8, pp. 195-202.
Masnah, S., & Hendrawati. (2020). the effect of mudharabah, musyarakah, and murabahah on profitability with non performing financing (npf) as moderated variables (case study on islamic commercial banks in indonesia for the 2014-2019 period). Indonesian College of Economics - 2020., pp. 1-20.
Masraf Al Rayan. (2023). FINANCIAL STATEMENTS. Doha, Qatar. Retrieved from https://marblobstorage.blob.core.windows.net/files/marfiles/FinancialSatements/EN/Masraf-Al-Rayan-FS-31-Mar-23-en.pdf
Menegaki, A. (2019). The ARDL Method in the Energy-Growth Nexus Field; Best Implementation Strategies. Economies, 7(4), pp. 1-16. https://doi.org/10.3390/economies7040105
Rumaishaa, Z., & Zamzami, R. (2022). The effect of murabahah and istishna financing on net profit with tpf as a moderating variable in islamic commercial banks for the 2018-2020 period. Current advanced research on sharia finance and economic worldwide (cashflow), 1(4), pp. 115-130.
Sari, A., & Maharani. (2022). the effect of murabahah, musyarakah, and ijarah financing on profitability with non performing financing as a moderation variable in islamic commercial banks for the 2016-2020 period. current advanced research on sharia finance and economic worldwide (cashflow), 01(04). https://doi.org/10.55047/cashflow.v1i4.316
Sufian, F. (2007). The efficiency of Islamic Banking Industry: A non parametric analysis with non-discretionary input variable. Islamic Economic Studies, 14(1).
Sukmawati, F., & Garsela, I. (2016). Advances in Economics, Business and Management Research,1st Global Conference on Business, Management and Entreupreuneurship (GCBME-16 ). In A. Press (Ed.), The Effect of Return on Assets and Return on Equity to the Stock Price, 15, pp. 53-57. Bandung, Indonesia.
Syahri, N., & Harjito, D. (2020, JUIN). The effect of financing using the principle of profit-loss sharing on profitability level of commercial Islamic bank registered in Bank Indonesia. Asian Journal of Islamic Management (AJIM), 2(1), pp.4658.https://doi.org/10.1108/AJIM.vol2.iss1.art5
Tjoteng, A., Fathoni, Z., & Munira, M. (2022). The Effect Of Mudharabah And Musyarakah Financing On The Profitability Of Islamic General Banks For The 2020-2021 Period. Jurnal Ilmiah Akuntansi Pancasila JIAP, 2(2), pp. 80 – 94. Retrieved from https://journal.unpar.ac.id/index.php/piabc/article/view/2457/2172
Vegirawati, T., Susetyo, D., Meutia, I., & Fuadah, L. (2019). Do Contributions of Islamic Banks Stakeholders Influence Profit and Loss Sharing Financing? : Empirical Evidence in Indonesia. International Journal of Islamic Economics and Finance Studies(1), pp. 60-76. https://doi.org/10.25272/ijisef.455191
Vejzagic, M. (2014). Ijarah Muntahia Bittamleek (IMB): A risk management perspective. Journal of Accounting, Auditing, Economics and Finance, 2(1), pp. 001-007. Retrieved from http://www.meritresearchjournals.org/aaef/index.htm
Published
How to Cite
Issue
Section
Copyright (c) 2023 LARABI MOUSTAPHA, Troubia Nadir
This work is licensed under a Creative Commons Attribution 4.0 International License.
