Research Article
Factors Affecting Profit Distribution Management of General Islamic Banks In Indonesia
@INPROCEEDINGS{10.4108/eai.20-1-2018.2282448, author={Nur Afni Yunita and Yunina Yunina and Sri Mulyati and Dy Ilham Satria and Muammar Khaddafi and Wahyuddin Albra}, title={Factors Affecting Profit Distribution Management of General Islamic Banks In Indonesia}, proceedings={Proceedings of the 1st Workshop on Multidisciplinary and Its Applications Part 1, WMA-01 2018, 19-20 January 2018, Aceh, Indonesia}, publisher={EAI}, proceedings_a={WMA-1}, year={2019}, month={9}, keywords={profit distribution management (pdm) capital adequacy effectiveness of depositors funds asset composition deposits productive assets management rate of inflation}, doi={10.4108/eai.20-1-2018.2282448} }- Nur Afni Yunita
Yunina Yunina
Sri Mulyati
Dy Ilham Satria
Muammar Khaddafi
Wahyuddin Albra
Year: 2019
Factors Affecting Profit Distribution Management of General Islamic Banks In Indonesia
WMA-1
EAI
DOI: 10.4108/eai.20-1-2018.2282448
Abstract
Operational of Islamic Banking always prioritize the principles of Muamalat (transaction or dealing), fairness, and togetherness between the bank and the customer. These principles are the foundation resulting in Islamic banks outperforms other conventional banks. The fairness principle is also used in dividing the profit including Profit Distribution Management (PDM). PDM is the profit distribution based on the ratio agreement between the Islamic bank and depositor. The fluctuation movement of PDM is influenced by several factors including internal and external factors. Some internal factors of Islamic banks influencing PDM including are Capital Adequacy, Effectiveness of Depositors Funds, Asset Composition, Deposits, Productive Assets Management, and Inflation Rate. This study aims to investigate and analyse the factors affecting PDM. This study was conducted at 11 general Islamic bank registered in Indonesia in the period of 2012 to 2016. The results show that there are four factors significantly influencing PDM, namely: Capital Adequacy, Effectiveness of Depositors Funds, Asset Composition and Deposits. Two other factors, namely: Productive Assets Management and Rate of Inflation have no significant influence on PDM.