摘要：The purpose of this research is to investigate the role of discretionary loan loss provision (LLP) musharaka financing on the financial performance of Sharia Business Unit (SBU) Banks in Indonesia.This research examine the relationship between loan loss provision and financial performance in 22 SBU banks for 5 years using Structural Equation ModelingPartial Least Square (SEM-PLS).The result shows that the probability of default and loss given default are determinants of loan loss provision.Whereas return on assets,nonperforming financial,net operating margin,and operating costs on operating income were explanatory variables for financial performance.This research indicates that there are direct and indirect effects of musharaka LLP on financial performance.
关键词：Sharia Business Unit;Musharaka Financing;Discretionary;Loan Loss Provision;Financial Performance
