The Effect of Non Performing Financing Mudharabah And Murabahah Financing on The Profitability of Sharia Banking

Abstract

This study aims to determine the effect of Non Performing Financing (NPF) on Mudharabah and Murabahah financing on Sharia Banking Profitability. This research is a quantitative research. The data of this study were taken from the annual reports of sharia banking and Otoritas Jasa Keuangan (OJK). Research variables include the independent variable are the NPF of Mudharabah financing and the NPF of Murabahah financing and the dependent variable is Profitability. Analysis technique using descriptive statistical techniques, Multiple Linear Regression, Coefficient of Determination Test, t test and f test assisted by SPSS 22.0. The results show that based on the results of the t test (partial) which shows that it has a regression coefficient value of -0.046 and has a significance value of Non Performing Financing (NPF) for mudharabah financing of 0.008 which means it is smaller or equal to the value of which is 0.05, it can be concluded that the NPF of mudharabah financing has a negative and significant effect on profitability in Sharia banking.  And the results of the t-test (partial) which show that the regression coefficient value is -0.622 with a significant probability of NPF murabahah financing is 0.00 which means it is smaller or equal to the value of which is 0.05, So it can be concluded that the NPF of murabahah financing has a negative and significant effect on profitability in Sharia banking. While the dominant variable that simultaneously effect on profitability in Sharia banking is the NPF of murabahah financing with a significant value is 0.00