The Influence of Financial Performance and Types of Financing on the Stability of Indonesian Islamic Rural Bank

Abstract

The purpose of this study was to examine the effect of financial performance and type of financing on the stability of Indonesian Islamic Rural Banks. Financial performance variables are measured using the return on equity ratio. Variable types of financing are measured using the proportion of Murabaha, profit sharing, multi-service contracts, and financing to deposit ratio. Stability was measured by z-score value. The data source used is the Islamic Rural Banks annual financial statements for the 2015-2018 period. The results found that the stability of Islamic Rural banks was influenced by financial performance, the ratio of financing to deposit funding, and equity ratio. The type of financing has no significant effect on