Comparison of Risk and Return on Trading and Profit Sharing Based Financing Contract in Indonesian Islamic Bank

Fatin Fadhilah Hasib, Puji Sucia Sukmaningrum, Nisful Laila, Achsania Hendratmi

2017

Abstract

This study aims to analyze the difference between return and risk between profit sharing-based and trading-based financing in Islamic bank. This study uses quantitative approach using Mann Whitney Test data sampled from 6 Indonesian Islamic banks, collected from their quarterly financial reports from 2011 to 2015. The result shows the significant difference in return, while the risk of profit sharing based and trading based are almost the same. From the analysis, it can be concluded that profit sharing-based financing is less desirable not because of its risk. Trading-based financing is more desirable then the profit sharing because of its return. This study is discussing about the comparison between risk and return of trading and profit sharing contract in Islamic bank. Until now still there is no study about this topic, because many of the topics of the bank are contracts, while to compare the risk and return alone there are still not much.

Paper Citation

in Harvard Style

Hasib F., Sukmaningrum P., Hendratmi A. and Laila N. (2017). Comparison of Risk and Return on Trading and Profit Sharing Based Financing Contract in Indonesian Islamic Bank.In 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP, ISBN 978-989-758-315-5, pages 131-134. DOI: 10.5220/0007078101310134

in Bibtex Style

@conference{iciebp17,
author={Fatin Fadhilah Hasib and Puji Sucia Sukmaningrum and Achsania Hendratmi and Nisful Laila},
title={Comparison of Risk and Return on Trading and Profit Sharing Based Financing Contract in Indonesian Islamic Bank},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,},
year={2017},
pages={131-134},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007078101310134},
isbn={978-989-758-315-5},
}

in EndNote Style

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,
TI - Comparison of Risk and Return on Trading and Profit Sharing Based Financing Contract in Indonesian Islamic Bank
SN - 978-989-758-315-5
AU - Hasib F.
AU - Sukmaningrum P.
AU - Hendratmi A.
AU - Laila N.
PY - 2017
SP - 131
EP - 134
DO - 10.5220/0007078101310134