Empirical Research on Rate of Return, Interest Rate and Mudharabah Deposit

Abstract

The objective of this study is to analyze the effects of interest rate and the rate of return onmudharabah deposits in Islamic banks. Using data covering the period from January 2012 to September 2015,the study applies the regression analysis to analyze the effect between variable and independence t- test toanalyze the mean difference between rate of return and rate of interest. Regression analysis show that rate ofreturn has negative influence significantly on mudharabah deposits, while interest rate has negativeinfluence but not significant. The result of independent t-test shows that the interest rate is not different from the rate of return in Islamic Bank.