To function well, a financial institution requires to have enough capital, to
keep it’s asset quality, to produce sufficient profits to survive the business and to
maintain it’s liquidity for paying it’s obligation anytime. It should be managed
well, by implementing prudence principles. If it wants to expand it’s financing
product, it should increase the capital. The financing distribution needs a third
party fund, Capital Adequecy Ratio (CAR), Financing to Deposit Ratio (FDR),
and Non Performing Financing (NPF) to the financing distribution.
This is a quantitative research. The population are all islamic bank’s
registered in Bank of Indonesia (BI) in the period of 2012-2014. The analysis was
done using multiple liniear regression.
Based on the statistic testing and discussion, all the variable above
simultaneosly influence the financing distribution. Partially the third fund party
has a positive signifiicant effect on the financing ditribution, and CAR has no
positive effect to it. FDR has no negative effect on the financing distribution but
NPF has a negative effect on it.