Profit-Sharing Financing for Islamic Banks in Indonesia in Human Resource and Finance Point of View

Abstract

This study aims to investigate the impact of Third Party Funds, non-performing financing, and Human resources on profit-sharing financing. To investigate the direction of the influence relationship between variables, a threshold autoregressive estimation is carried out with a monthly research period from January 2019 to January 2021 uses secondary data obtained from the Indonesian Financial Services Authority. we found that Third-party funds affect bank profitsharing financing is not significant in Indonesia. Non-performing Financing (NPF) has an impact on profit-sharing financing performance in Indonesia. Human resources have an impact on profitsharing financing in Indonesia. It is implied that Third-party funds have an inverse or negative impact on profit sharing financing where the larger Third-party funds actually make profitsharing financing decrease, but this is not significant or the meaning cannot be said to have happened or is still ambiguous. However, non-performing loans have a significant negative impact on profit-sharing financing, this indicates that non-performing financing has a negative impact on bank performance because bank performance relies on financing.