THE IMPACT OF CAPITAL ADEQUACY, EFFICIENCY, SIZE, EQUITY, LIQUIDITY AND FEE BASED INCOME TO BEHAVIORS OF FUNDING AND FINANCING OF ISLAMIC BANKS IN INDONESIA (JANUARY 2010 – DECEMBER 2014)

Abstract

This study aimed to see the behavior of funding and financing of Islamic Banks in Indonesia in years period January 2010 until December 2014. Bank as the financial intermediary institution take a role to facilitate the channeling between the parties who have excessive fund and distribute to the parties who need fund. Emphasise the important of funding and financing, this study aimed to see the implication of CAR, Efficiency, Size, Equity, Liquidity and Fee based income to the behavior of Funding and Financing. This study used Data Envelopment Analysis to measure efficiency value through intermediary approach and Multiple Regression Analysis. The data used in this study are the data of Capital Adequacy Ratio (CAR), Efficiency, Asset, Equity, Financing to Deposit Ratio (FDR), Fee Based Income, Funding and Financing of Islamic Banks in Indonesia. The sample used were selected by purposive sampling method with some criterias. The samples are 11 Islamic Banks listed in Financial Service Authority database in years period January 2010 until December 2014. From the test result using the Data Envelopment Analysis, There are some Islamic Banks in Indonesia which are still inefficient. Meanwhile based to Multiple Regression Analysis showed that CAR has positive impact to funding and no impact financing, Efficiency has no impact to both of funding and financing, Asset has no impact to funding but has positive impact to financing, Equity has no impact to funding and negative impact to financing, Liquidity has no impact to funding and has positive impact to financing, while Fee based income has no impact to both of funding and financing.