Analysis Financial Strategy of Islamic Banking in Micro Small Medium Enterprises

Abstract

Micro, small and medium enterprises as one of the key player of economic development in Indonesia, cannot be separated from the role of bankas the intermediary institution. This research analyzes the Islamic bank financial ratio such as CAR, ROA, NPF, FDR and OEOI that affect credit distribution to MSME during 2012 – 2015, and gives the empirical proven of significant effect in partial and simultaneously. Through purposive sampling with secondary data from the published quarterly report, this research has got 78 samples from 6 Islamic bank in 4 years which fulfilled the criteria. The research has the goal of finding the right strategy for Islamic banking financing ratio is not too high. This is because the higher the financing-to-deposit ratio of industrial / Financing to Deposit Ratio (FDR) will encourage an increased risk that in turn leads to worsening of the ratio of financing problems of industrial / Non-Performing Financing (NPF). During this financing scheme or pattern that has not been fully applied also be run according to Sharia rules and is one of the challenges in the future. Quantitative and qualitative method used in this study with the primary and secondary data. The data is taken from National Bank Indonesia's Islamic banking which includes Commercial Bank, Sharia and Sharia rural banks.
Keywords: CAR, ROA, NPF, FDR, OEOI, FDR, NPF, Islamic bank