Overcoming Asymmetric Information with A Profit Sharing System at Bank Sharia : Acceleration of Theory and Practice

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Abstract: This study aims to examine the profit-sharing system in Islamic banks in overcoming the adverse selection issue and the practice of implementing the profit-sharing system. In this study, evaluative and descriptive methods were used. The results of this study indicate that theoretically the issue of asymmetric information can be overcome by a profit-sharing system in Islamic banks. In practice, the profit-sharing system has been implemented at Bank NTB Syariah as a superior product in productive financing. The market share of the profit-sharing system at Bank NTB Syariah was at 64.73 percent in 2019 and increased to 68.55 percent in 2020 with a growth of 35.78 percent. The Covid-19 pandemic does not significantly affect the health condition of Bank NTB Syariah where Bank NTB Syariah remains relatively healthy before and after the Covid-19 pandemic.

Financial Engineering, E-ISSN: 2945-1140, Volume 1, 2023, Art. #18

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Muaidy Yasin, Lalu Muh. Kabul, Lalu Edy Herman, "Overcoming Asymmetric Information with A Profit Sharing System at Bank Sharia : Acceleration of Theory and Practice," WSEAS Transactions on Financial Engineering, vol. 1, pp. 185-193, 2023, DOI:10.37394/232032.2023.1.18
Muaidy Yasin, Lalu Muh. Kabul, Lalu Edy Herman. Overcoming Asymmetric Information with A Profit Sharing System at Bank Sharia : Acceleration of Theory and Practice. Financial Engineering. 2023;1:185-193. 10.37394/232032.2023.1.18
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