The Effect of Third Party Fund and Financing to Deposit Ratio on Murabahah Margin in Islamic Banks Period 2014-2018

Abstract

Islamic banks Financing the most popular is a murabahah financing. Becaused murabahah financing is a financing with the small risk (classified natural certainly contract ) where is cash flow and financing time has been set and determined from start contract that doesn’t pose a greater risk to sharia bank and the customer as long as the financing runs. Murabahah margin is an amount of profit obtained from activities operational sharia bank which are related with murabahah financing. Murabahah margin is one of benchmark ability sharia bank in distribute financing murabahah. the measuring ability there are several factors that need to be considered that is third party fund and financing to deposit ratio. This research aim to examine the effect of third party fund and financing to deposit ratio on murabahah margin the Islamic banks in Indonesia period 2014-2018. This type of this research was an assosiative research. This research is aimed at finding out the significant influence of third party fund and financing to deposit ratio toward murabahah margin  the Islamic banks in Indonesia. There are two independent variabels of this research, namely : third party fund, and financing to deposit ratio. The sample in this research used a purposive sampling. The sample were taken from Islamic banks of 12 sharia banks. The data sources were secondary data, while data were taken from Islamic banks and Islamic bank statistic issued by OJK. This research was a quantitative analysis. This research use multiple liniear regression. The result show that third party fund has positive and significant effect on the murabahah margin. While financing to deposit ratio has no effect on the murabahah margin.