The Performance of Islamic Microfinance Institutions in the COVID-19 Pandemic: Is Asset Quality Important?

Authors : Oyong Lisa, Lucky Nugroho, Ildiko Orban, Wiwik Utami, Erik Nugraha

Pages : 145-160

Doi:10.17233/sosyoekonomi.2023.04.07

View : 124 | Download : 308

Publication Date : 2023-10-26

Article Type : Research Paper

Abstract :This research aimed to analyse the moderating impact of non-performing financing on the effect of the distribution of murabahah financing and ijarah financing on the return on assets of Islamic microfinance institutions. The research method used was quantitative, using regression panel data. As for the research results, it is known that ijarah financing has no significant effect on increasing the return on assets of Islamic microfinance institutions. Meanwhile, murabahah financing positively and significantly affects increasing return on assets. Furthermore, the non-performing financing variable becomes a moderating variable that weakens the relationship between the distribution of ijarah financing and murabahah financing to the return on assets of Islamic microfinance institutions. The novelty of this study is to link the quality of the funding with the financial performance of Islamic microfinance institutions during the COVID-19 pandemic.
Keywords : İslâmî Mikro Finans Kurumu, Murabaha Finansmanı, İcara Finansmanı, Aktif Kârlılığı, Takipteki Finansman