Measuring Optimal Portfolio for Selected Financing Contracts of Islamic Banks in Indonesia

Measuring Optimal Portfolio for Selected Financing Contracts of Islamic Banks in Indonesia

Authors

  • Dimas Bagus Wiranatakusuma Universitas Muhammadiyah Yogyakarta
  • Aurellia Azh Nindy Universitas Muhammadiyah Yogyakarta

DOI:

https://doi.org/10.61459/ijfs.v1i1.5

Keywords:

Islamic Banking, Optimal Threshold, Financing Contracts, Vulnerability

Abstract

Financing is the primary factor in boosting the operational performance of Islamic banks. Financing is a productive asset that is susceptible to risk. The research mainly aims to find the optimal limit that can be tolerated in order to improve the operational performance of Islamic banks. The research objects cover Mudharabah, Musharakah, Murabahah, and Istishna financing contracts. This study shows the optimal level of Mudharabah growth should be between 1% and 4%, Musharakah growth should be between 3% and 6%, Murabahah growth should be between 2% and 3.6%, and Istishna growth should be between 1% and 3.7%.

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Published

09/11/2023

How to Cite

Wiranatakusuma, D. B., & Nindy, A. A. (2023). Measuring Optimal Portfolio for Selected Financing Contracts of Islamic Banks in Indonesia. The International Journal of Financial Systems, 1(1), 1–34. https://doi.org/10.61459/ijfs.v1i1.5

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