Proceedings of the 3rd International Conference on Economic and Social Science, ICON-ESS, 17–18 October 2018, Banda Aceh, Indonesia

Research Article

The Third Party Fund and its Impact on Mudarabah Financing: An Empirical Analysis of Islamic Banks in Aceh, Indonesia

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  • @INPROCEEDINGS{10.4108/eai.17-10-2018.2294213,
        author={Elidar  Elidar and Ratna  Mutia and Khairul  Mutia and Martahadi  Mardhani},
        title={The Third Party Fund and its Impact on Mudarabah Financing: An Empirical Analysis of Islamic Banks in Aceh, Indonesia},
        proceedings={Proceedings of the 3rd International Conference on Economic and Social Science, ICON-ESS, 17--18 October 2018, Banda Aceh, Indonesia},
        publisher={EAI},
        proceedings_a={ICON-ESS},
        year={2020},
        month={4},
        keywords={third party fund mudarabah financing islamic banking intermediary financial services},
        doi={10.4108/eai.17-10-2018.2294213}
    }
    
  • Elidar Elidar
    Ratna Mutia
    Khairul Mutia
    Martahadi Mardhani
    Year: 2020
    The Third Party Fund and its Impact on Mudarabah Financing: An Empirical Analysis of Islamic Banks in Aceh, Indonesia
    ICON-ESS
    EAI
    DOI: 10.4108/eai.17-10-2018.2294213
Elidar Elidar1,*, Ratna Mutia1, Khairul Mutia1, Martahadi Mardhani2
  • 1: Department of Economic Education, Universitas Serambi Mekkah, Indonesia
  • 2: Department of Economic Development, Universitas Samudra, Indonesia
*Contact email: elidar@gmail.com

Abstract

This study investigates the impact of third party fund on mudarabah financing in Islamic banking in Banda Aceh, Indonesia. We conducted this investigation using secondary data in the period 2010-2016 which was analyzed using econometric methods. From the results of the investigation, we have found that third party funds have an impact on increasing mudarabah financing. For the sustainability of the Islamic banking system in the future, this banking must be able to provide excellent service to the costumer in meeting various needs of sharia-based financial transactions. Thus it is expected that Islamic banking is able to maintain and improve its performance in conducting intermediation activities through various financial services products.