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Original Research

THIRD PARTY FUNDS, OTHER BANK LOANS, AND CAPITAL ON FEE-BASED INCOME AT ISLAMIC BANKS IN INDONESIA

DIKDIK SALEH SADIKIN 1, and RADEN BAMBANG BUDHIJANA 2.

Vol 18, No 09 ( 2023 )   |  DOI: 10.5281/zenodo.8366253   |   Author Affiliation: Department of Accounting, Indonesia Banking School, Jl. Kemang Raya no. 35, Jakarta Selatan 1; Department of Management, Indonesia Banking School, Jl. Kemang Raya no. 35, Jakarta Selatan 2.   |   Licensing: CC 4.0   |   Pg no: 401-411   |   Published on: 16-09-2023

Abstract

The main income of the bank including Islamic banks derived from financing. In Islamic banking is the main income can be derived from the margin and profit sharing. In one side financing give benefit to Islamic banking, but on the other hand face with credit risk, so the quality of financing is influential on Islamic banking income. Which in turn affects existing of the Islamic banking itself. It is necessary to diversify income sources of Islamic banking. Another source of revenue that can be obtained Islamic banking comes from fees derived from Islamic banking services that can be provided to the public in the form of wakalah, kafalah, hawalah and rahn. Islamic banking revenues derived from these services known as fee-based income (FBI). This research was conducted to analysis any factors that may affect the fee-based income of Islamic Banking. The independent variables used in this study a Third-Party Fund (DPK), Other Bank Loan (PBL) and Capital (MDL). Methods of this study using is quantitative where data used in the form of secondary data. The results of this study indicate that the Third-Party Fund (DPK) and Other Bank Loan (PBL) positive and significant impact on the achievement of Islamic banking fee-based income, while Capital (MDL) significant with negative effect. DPK, PBL and MDL influence significantly on the achievement of Islamic Banking Fee Based Income.


Keywords

Fee Based Income, Islamic Banking, TSR Model, Circular Causations,