FACTORS THAT AFFECT EQUITY FINANCING IN SHARIAH MANDIRI TBK BANK

Abstract

Equity financing has an important role in driving financing in the real sector. The core business of Islamic banking is based on the real sector but the portion of financing in Islamic banking is currently still dominated by debt financing. This study aims to analyze the factors that influence equity financing at Bank Syariah Mandiri. This study uses the Error Correction Model (ECM) method. The results showed that the most influential factor on equity financing was the BI Rate. Then followed by internal variables DPK, CAR, ROA, NPF, BOPO, FDR, and the external factor is inflation.

Keywords

• islamic banking
• equity financing
• mudaraba
• musharaka
• error correction model