The Influence of Third-party Funds; Asset Quality, Profit, and Lost Sharing to The Islamic Bank Liquidity in Indonesia

During the COVID-19 pandemic, Islamic commercial banks experienced liquidity excess due to third-party funds that increased and weak distribution of financing by banks. In addition, asset quality is showing good development, this will affect bank's ability meet sufficient liquidity. This study uses 7 as a sample from population 14 registered in Financial Services Authority (OJK) March 2012 December 2020 (quarterly data) period. research method fixed-effect model, with GLS weight approach, Cross-section SUR. The results are third party funds, (Non-Performing Financing), Capital Adequacy Ratio have significant effect on banks, while Profit Loss Sharing Return Assets do not