THE INFLUENCE OF CAPITAL ADEQUACY RATIO (CAR), NON PERFORMING FINANCING (NPF), AND PROFIT SHARING RATIO TO PROF IT SHARING FINANCING SHARIA BANK (Case Study: Sharia Bank in Indonesia 2010-2014)

Abstract

At this time, Islamic banks are growing and developing. The difference between Islamic banks and Conventional banks makesome people switch to using Islamic banks’s service. Non-riba system that used at Islamic banks have undertaken to carry outeconomic activitiesaccordance to Islamic principles. Accordingto Islamic principles, profit sharing system is the differenceservice that given by Islamic banks. However, the profit sharing system is less attractive to public. This study aimed to analyzethe influence of Capital Adequacy Ratio (CAR), Non Performing Financing (NPF), and profit sharing ratio to profit sharingfinancing, simultaneously and partially. Population in this study are Islamic banks in Indonesia. Sampling technique that usedinthis study is purposive sampling and obtained seven Islamic banks with five years study period. Data analysis method in thisstudy is panel data regression. The result showed that CapitalAdequacy Ratio (CAR), Non Performing Financing (NPF), andprofit sharing ratio simultaneously has significant effect to profit sharing financing. While partially, Capital Adequacy Ratio(CAR) has negative significant effect to profit sharing financing, Non Performing Financing (NPF) and profit sharing ratio hasno significant effect to profit sharing financing.