Optimum financing portfolio of islamic microfinance institutions: Indonesia case

Imron Mawardi; Tika Widiastuti; Puji Sucia Sukmaningrum; Muhammad Ubaidillah Al Mustofa

Optimum financing portfolio of islamic microfinance institutions: Indonesia case

Imron Mawardi
, Tika Widiastuti
, Puji Sucia Sukmaningrum
, Muhammad Ubaidillah Al Mustofa

Universitas Airlangga
Islamic Finance from International Center of Education in Islamic Finance (INCEIF)

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

The purpose of this paper is to analyze the risk-return of financing and find the optimum financing instruments portfolio of Islamic microfinance institutions (IMFI).The optimum portfolio financing is determined by the minimum coefficients of variation of financing instruments portfolio, namely Murabahah, Mudharabah-Musyarakah, and Ijarah. The methodology of this study is quantitative, which is using risk and return theory to compute risk, return, variance, and coefficient of variation of financing instruments portfolio. The solver program of Microsoft Excel is used to find the optimum combination and composition of financing portfolio. This research found that ijarah financing has the highest return.

Original language	English
Pages (from-to)	268-274
Number of pages	7
Journal	Utopia y Praxis Latinoamericana
Volume	24
Issue number	Extra5
Publication status	Published - 2019
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 5 Gender Equality
SDG 8 Decent Work and Economic Growth

Keywords

Financing portfolio
Islamic microfinance institution
Mudharabah-musyarakah
Murabahah

Cite this

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title = "Optimum financing portfolio of islamic microfinance institutions: Indonesia case",

abstract = "The purpose of this paper is to analyze the risk-return of financing and find the optimum financing instruments portfolio of Islamic microfinance institutions (IMFI).The optimum portfolio financing is determined by the minimum coefficients of variation of financing instruments portfolio, namely Murabahah, Mudharabah-Musyarakah, and Ijarah. The methodology of this study is quantitative, which is using risk and return theory to compute risk, return, variance, and coefficient of variation of financing instruments portfolio. The solver program of Microsoft Excel is used to find the optimum combination and composition of financing portfolio. This research found that ijarah financing has the highest return.",

keywords = "Financing portfolio, Islamic microfinance institution, Mudharabah-musyarakah, Murabahah",

author = "Imron Mawardi and Tika Widiastuti and Sukmaningrum, \{Puji Sucia\} and \{Al Mustofa\}, \{Muhammad Ubaidillah\}",

year = "2019",

language = "English",

volume = "24",

pages = "268--274",

journal = "Utopia y Praxis Latinoamericana",

issn = "1316-5216",

publisher = "Universidad del Zulia",

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TY - JOUR

T1 - Optimum financing portfolio of islamic microfinance institutions

T2 - Indonesia case

AU - Mawardi, Imron

AU - Widiastuti, Tika

AU - Sukmaningrum, Puji Sucia

AU - Al Mustofa, Muhammad Ubaidillah

PY - 2019

Y1 - 2019

N2 - The purpose of this paper is to analyze the risk-return of financing and find the optimum financing instruments portfolio of Islamic microfinance institutions (IMFI).The optimum portfolio financing is determined by the minimum coefficients of variation of financing instruments portfolio, namely Murabahah, Mudharabah-Musyarakah, and Ijarah. The methodology of this study is quantitative, which is using risk and return theory to compute risk, return, variance, and coefficient of variation of financing instruments portfolio. The solver program of Microsoft Excel is used to find the optimum combination and composition of financing portfolio. This research found that ijarah financing has the highest return.

AB - The purpose of this paper is to analyze the risk-return of financing and find the optimum financing instruments portfolio of Islamic microfinance institutions (IMFI).The optimum portfolio financing is determined by the minimum coefficients of variation of financing instruments portfolio, namely Murabahah, Mudharabah-Musyarakah, and Ijarah. The methodology of this study is quantitative, which is using risk and return theory to compute risk, return, variance, and coefficient of variation of financing instruments portfolio. The solver program of Microsoft Excel is used to find the optimum combination and composition of financing portfolio. This research found that ijarah financing has the highest return.

KW - Financing portfolio

KW - Islamic microfinance institution

KW - Mudharabah-musyarakah

KW - Murabahah

UR - https://www.scopus.com/pages/publications/85077018371

M3 - Article

AN - SCOPUS:85077018371

SN - 1316-5216

VL - 24

SP - 268

EP - 274

JO - Utopia y Praxis Latinoamericana

JF - Utopia y Praxis Latinoamericana

IS - Extra5

ER -

Optimum financing portfolio of islamic microfinance institutions: Indonesia case

Abstract

UN SDGs

Keywords

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