EFFECT OF INFLATION RATE, NON PERFORMING FINANCING (NPF), AND NUMBER OF BRANCH OFFICES ON MURABAHAH FINANCING AT BANK MUAMALAT INDONESIA

Abstract

The development of the Islamic economic system was marked when there was a monetary crisis that hit capitalist countries and Indonesia. Bank Muamalat Indonesia became the first Islamic bank in Indonesia as well as being able to exist to survive in the conditions of the monetary crisis. Seeing the consumptive habits of the Indonesian people, murabahah financing products became one of the most popular products for customers. This study will answer whether Inflation, NPF, and the Number of Branch Offices have a significant effect on Murabahah Financing at Bank Muamalat Indonesia. This type of research is a quantitative research using Bank Muamalat's quarterly secondary data, Inflation data from Bank Indonesia, and Number of Branch Office data from Islamic banking statistics for the period 2017-2021. The purpose of this study is to analyze the influence of variable inflation, non-performing financing (NPF), and the number of branch offices on the amount of murabahah financing at Bank Muamalat Indonesia. The study used multiple linear regression analysis methods. The results showed that the inflation variable had a positive effect on murabahah financing, the NPF variable had a negative effect on murabahah financing, while the variable number of branch offices had no effect on murabahah financing