Banque Syar’i: Jurnal Ilmiah Perbankan Syariah
Journal title Banque Syar’i: Jurnal Ilmiah Perbankan Syariah Initials banque Abbreviation Banq. Syar’i J. llmiah Perbank. Syariah Language English, Indonesian Management Style Open Access Subject Areas Islamic Banking and Financial Studies under Sharia principles Frequency Twice a year on June and December DOI Prefix 10.32678/bs ISSN 2654-5993 (online); 2460-9765 (print) Publisher Sharia Banking Study Program, Faculty of Islamic Ecomomics & Business Editor-in-Chief Dr. Helaluddin, M.Pd. Citation Analysis Dimensions | Google Scholar It is a periodical scientific publication intended for economists who want to publish their articles on literature studies, research and scientific development in Islamic banking (see Focus and Scope). The articles of this journal are published every six months (2 issues per year, in June and December) Banque Syar’i: Jurnal Ilmiah Perbankan Syariah works closely with the AFEBIS Journal Forum (Indonesian Islamic Economics Journal Forum), the Islamic Economist Association (Ikatan Ahli Ekonomi Islam) and Islamic Economic Society (Masyarakat Ekonomi Syariah) which provides editorial members, peer reviewers, and authors, both are professional associations related to journal's aims and scopes. The review process in this journal employs a double-blind peer review, which means that both the reviewer's and author's identities are concealed from the reviewers and vice versa.
Jurusan Perbankan Syariah, Fakultas Ekonomi & Bisnis Islam, UIN Sultan Maulana Hasanuddin Banten
The Effect of Digital Financial Literacy, Security, and Technological Trust on Students' Interest in Online Sharia Investment
This research explores how the online sharia investment interest of FEBI students at the Islamic Banking Institute (UIN) of North Sumatra University is affected by elements like digital financial literacy, security, and trust in technology. This research utilizes a quantitative associative approach. A targeted sampling technique was employed to gather 100 participants. Following the collection of Likert-scale questionnaires, the main data were evaluated through multiple linear regression utilizing IBM SPSS 26 software. The findings indicate that students' enthusiasm for online sharia investment is positively and significantly impacted by three independent variables, whether considered separately or together. Trust in technology is the primary influence among the three factors. The R-squared value shows that the examined variables account for 49.5% of the variation in students' investment interest. Additional factors not addressed in this research affect the remaining segment.
Copyright (c) 2026 Banque Syar’i: Jurnal Ilmiah Perbankan Syariah
The Innovation Contract Effect on Sharia Capital Market Instruments in The Lens of Sharia Compliance Principles
This study aims to analyze contract innovation in Islamic capital market instruments and examine the role of religiosity in shaping perceptions of Sharia compliance. The research employs a qualitative library research approach through the analysis of academic literature, DSN-MUI fatwas, Islamic finance regulations, and scholarly discussions related to Islamic financial innovation and investor religiosity. The findings reveal that contract innovation in the Islamic capital market tends to prioritize formal legal compliance over substantive Sharia values such as justice, transparency, and public welfare. Furthermore, the literature suggests that religiosity may influence investor perceptions, as highly religious investors tend to critically assess whether Islamic financial products genuinely reflect Islamic ethical principles. This study highlights the importance of strengthening substantive Sharia compliance and integrating maqāṣid al-sharī‘ah values into the development of innovative Islamic capital market instruments.
Green Financing on Profitability in ASEAN Islamic Banks: The Role of Credit Risk and Corporate Governance
This study aims to analyze the impact of green financing on the profitability of Islamic banks in the ASEAN region, as well as to examine the role of credit risk and good corporate governance (GCG) as moderating variables, taking into account control variables such as the Financing to Deposit Ratio (FDR), Capital Adequacy Ratio (CAR), and operational efficiency (BOPO). The research method employed is a quantitative approach using secondary data in the form of financial statements and sustainability reports from 28 Islamic banks in ASEAN for the period 2020–2024. The analysis techniques utilize panel data regression and Moderating Regression Analysis (MRA) with the assistance of Eviews 12 software. The results indicate that green financing has a significant positive effect on profitability, as proxied by ROA. Meanwhile, credit risk does not have a significant effect on profitability, whereas GCG demonstrates a significant positive effect on profitability. In its moderating role, credit risk is not proven to moderate the relationship between green financing and profitability, whereas GCG is statistically significant but exhibits a negative direction potentially weakening the relationship. The findings of this study suggest that green financing activities aimed at improving profitability may actually be hindered by the implementation of overly strict and layered corporate governance (CG) practices, which burden banks with additional operational costs. Meanwhile, credit risk levels were found not to affect the success of such green financing. Therefore, Islamic banks in the ASEAN region need to design a more efficient and adaptive GCG system so that compliance procedures and risk management can ensure long-term sustainability without unduly sacrificing potential financial gains.
Digital Marketing as a Strategy to Enhance Islamic Financial Literacy and Inclusion among Generation Z
This article examines how digital marketing supports the literacy-inclusion agenda of Islamic finance among young consumers in Indonesia. Although Islamic banking continues to develop, public understanding and actual participation in Sharia-based financial services remain uneven. Generation Z is a relevant group for this issue because its information behavior is closely linked to social media, mobile applications, and visual communication. This study employed a descriptive qualitative design involving students of the Faculty of Sharia and Law, UIN Sultan Syarif Kasim Riau. The data were generated through semi-structured interviews, online observation of digital materials issued by Islamic financial institutions, and review of supporting documents. The analysis involved selecting and organizing empirical material, presenting the findings thematically, and interpreting the relationship between digital exposure, literacy, and service use. The study finds that digital marketing helps students learn key Islamic finance concepts, including riba prohibition, Sharia contracts, and profit-sharing schemes, while also functioning as promotion and two-way communication. Digital exposure also makes students more prepared to use online Islamic financial services, especially Islamic mobile banking. These findings suggest that digital marketing can be used as an educational and access-oriented strategy to improve young consumers' understanding of Islamic finance and encourage their participation in Sharia-compliant financial services.
Digital Tax Administration and Taxpayer Compliance: A Maslahah Mursalah Perspective on Islamic Financial Governance
This study aims to analyze the effectiveness of Coretax activation and annual digital tax reporting in improving taxpayer compliance, examine its implications for contemporary fiscal governance, and evaluate digital tax administration through the perspective of maslahah mursalah within Islamic financial governance. This research employed a qualitative socio-legal and normative-empirical approach conducted at several Primary Tax Offices in Lampung Province, Indonesia. Data were collected through in-depth interviews, participatory observation, and documentation studies involving 25 taxpayers, 3 tax officers, and 2 tax consultants selected purposively. The findings show that Coretax significantly improved taxpayer compliance through simplified reporting procedures, increased transparency, and enhanced administrative efficiency. Digital tax administration also encouraged behavioral transformation by increasing taxpayer awareness, reporting discipline, and independent reporting willingness. However, challenges related to digital literacy, internet accessibility, and technological adaptation remained significant barriers for certain taxpayers. From the perspective of maslahah mursalah, Coretax reflects the principles of taysir, transparency, accountability, and hifz al-mal by facilitating public services and strengthening fiscal governance. Nevertheless, the realization of public welfare remains dependent on inclusive accessibility and equitable implementation of digital tax systems. This study contributes to the development of digital fiscal governance studies by integrating taxpayer compliance with Islamic financial governance perspectives.
Sharia Compliance in Wadiah Contract Innovation: An analysis of Bonus Practices and The Substantive Shift from Tabarru' to Commercial Orientation
This study is motivated by the growing innovation of contracts in Islamic financial institutions, particularly wadiah-based products that have undergone practical transformation in response to modern market demands. This research aims to critically examine Sharia compliance in wadiah contract innovation, particularly recurring bonus distribution practices and their implications for the substantive transformation of wadiah from a trust-based (tabarru’) contract toward a more commercially oriented mechanism. Unlike previous studies that mainly focus on formal contractual compliance, this study highlights the ethical dimensions, customer perceptions, and maqāṣid al-sharī‘ah implications of wadiah innovation. Using a qualitative approach and library research method, this study examines academic literature, fatwas, and empirical studies related to the implementation of wadiah in Islamic financial institutions. The findings indicate that innovation in wadiah contracts, especially in the form of wadiah yad dhamanah, has shifted the contract from its original character as a tabarru’ or non-commercial contract toward a more commercial orientation. This shift is reflected in the repeated provision of bonuses, which may shape customer expectations of financial returns. Substantively, this condition has the potential to obscure the original essence of wadiah and create inconsistencies with the objectives of maqāṣid al-sharī‘ah, particularly in terms of transparency and fairness. Therefore, this study emphasizes that Sharia compliance should not be assessed solely from a legal-formal perspective, but should also include ethical considerations and the objectives of Islamic law. The study highlights the importance of strengthening Sharia supervision, improving product transparency, and enhancing customer education to preserve the integrity of contracts in Islamic financial practices.
Exploring Shariah-Compliant Gold Investment: The Case of Gold Installments
Sharia-compliant investments are gaining popularity among Indonesians, particularly amidst global economic uncertainty. One rapidly growing sharia-compliant investment instrument is gold installments, such as those offered by Bank Syariah Indonesia (BSI). BSI Gold Installments allow customers to purchase Precious Metal gold in installments, using a murabahah contract that complies with sharia principles. This study aims to analyze the risks and returns of BSI's gold installment product and evaluate its suitability as a primary investment instrument for customers seeking sharia-compliant investments. Using a quantitative approach, this study estimates the potential profits and risks of BSI's gold installment program using historical gold price data. The analysis shows that while this product offers attractive profit potential, there are differing views among Islamic scholars regarding the suitability of gold installment contracts with Sharia principles. Nevertheless, this product can be a relatively low-risk investment option, especially for those seeking a more affordable gold investment. This study also suggests comparing BSI's gold installments with other gold investment products, such as pawned gold, to further research their performance and sharia-compliant nature.
Copyright (c) 2025 Banque Syar’i: Jurnal Ilmiah Perbankan Syariah
The Influence of The Financial Ratio of The Early Warning System and The Covid-19 Pandemic on The Solvency Level of Islamic General Insurance Companies in Indonesia
The purpose of this study is to determine the effect of the liquidity ratio, claim expense ratio, own retention ratio, and the COVID-19 pandemic on the solvency level of Islamic general insurance companies, as proxied by risk-based capital (RBC). The sample for this study was Islamic general insurance companies that published financial statements for the 2019-2023 period. The sample size was 8 using a purposive sampling method. This study used a quantitative approach with descriptive analysis, static panel data regression, Chow test, Hausman test, and Lagrange multiplier test, processed using STATA software version 17. The results show that the liquidity ratio partially has a significant negative effect on solvency level, the claim expense ratio partially has no significant effect on solvency level, the own retention ratio partially has no significant effect on solvency level, and the COVID-19 pandemic partially has no significant effect on solvency level. Simultaneously, the liquidity ratio, claim expense ratio, own retention ratio, and the COVID-19 pandemic have a significant effect on solvency level. The results of the R2 coefficient value of 21.70% indicate that the liquidity ratio, claim burden ratio, own retention ratio and the Covid-19 pandemic are able to explain the dependent variable, namely the solvency level, by 21.70%.
Sosialisasi Tabungan Emas Pegadaian Syariah di Desa Air Putih Bengkulu Tengah
This study aims to enhance the understanding and interest of the community toward the Pegadaian Syariah Gold Savings product in Air Putih Village, Talang Empat District, Central Bengkulu Regency. The research employed the Participatory Action Research (PAR) method, engaging both the local community and Pegadaian Syariah CPS Bengkulu in socialization and educational activities. The program was implemented over four months, from March to June 2025, through several stages: site survey, socialization, and evaluation of understanding. The results indicate a significant improvement in community awareness of the gold savings product, increasing from 0% before the activity to 76% afterward. Additionally, community interest in opening gold savings accounts rose from 0% to 20%. These findings demonstrate that participatory socialization activities can serve as an effective strategy to strengthen Islamic financial literacy and promote investment practices aligned with Islamic principles at the village level.
The Impact of Financial Performance on The Market Share of Islamic Commercial Banks in Indonesia
Financial performance is a key element in assessing the quality of Islamic banks and is a crucial factor influencing people's decisions to save or use Islamic banking services. This study aims to demonstrate the effect of financial performance on the market share of Islamic Commercial Banks (BUS) in Indonesia registered with the Financial Services Authority (OJK). The financial performance in question is measured using financial ratios, namely the Capital Adequacy Ratio (CAR), Operating Expenses to Operating Income (BOPO), Non-Performing Financing (NPF), Financial to Deposit Ratio (FDR), and Third-Party Funds (DPK). The objects of this study were Islamic Commercial Banks registered with the OJK in 2022-2024. The research sample was selected using a purposive sampling technique. Based on the criteria, the sample used in this study was 13 BUS. Secondary data collected were financial reports from each BUS's website. The data were processed using a multiple regression model statistical test. The results of this study demonstrate that CAR, NPF, and DPK have no effect on BUS market share. Meanwhile, BOPO has a positive effect on BUS market share. Furthermore, FDR negatively impacts the market share of Islamic banks. Simultaneously, CAR, BOPO, NPF, FDR, and DPK influence the market share of Islamic banks.
Health Level and Financial Distress Analysis of Bank Aladin Syariah Using The RGEC Method (2020-2024)
This study aims to analyze the health level and potential financial distress of Bank Aladin Syariah during the 2020–2024 period using the RGEC method (Risk Profile, Good Corporate Governance, Earnings, and Capital) and the Modified Altman Z-Score model. The research is descriptive in nature with a quantitative approach, utilizing Bank Aladin’s annual financial statements, which are analyzed based on the key RGEC indicators. To detect the risk of bankruptcy, the Modified Altman Z-Score model is applied. The findings reveal that the bank’s health condition experienced significant fluctuations: it was classified as very healthy (PK-1) in 2020 but fell into the less healthy category (PK-4) from 2021 to 2024, although a gradual improvement trend was observed. Meanwhile, the Altman Z-Score results over the five-year period indicate that Bank Aladin remained in the safe zone from financial distress. These findings imply that, although improvements are still needed in operational efficiency and profitability, the bank has maintained strong risk management and capital adequacy. Theoretically, this study contributes to the literature on the longitudinal analysis of Islamic bank health, while practically, it offers valuable insights for regulators, bank management, and investors in formulating policies and strategies to strengthen Islamic banks in the digital era.
The Relationship Between CR, DER, and ROA with Stock Returns: VECM Approach
This study aims to determine the relationship between financial ratios and stock returns of food and beverage sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) in the long and short term. The financial ratios studied are: Current Ratio (CR), Debt to Equity Ratio (DER) and Return On Asset (ROA). The population in this study is food and beverage sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2017-2022 period. The research sample was 23 food and beverage companies obtained by purposive sampling technique. The data collection technique used is secondary analysis. The data analysis method used in this study is the Vector Error Correction Model (VECM). Based on the results of calculations in the short term, it is known that the t-statistical values in the variables CR are 0.29261 < 1.977826, DER ( -0.09993 > -1.977826) and ROA ( -2.46756 < -1.977826). While in the long term known t-statistical values in variables CR and ROA (0.28163, 0.95621 < 1.977826) and DER (2.04780 > 1.977826). For the granger causality test, the results of the prob value were found. In the relationship between CR and DER (0.0458 < 0.05) and the relationship between CR and ROA with prob values. 0.0170 < 0.05. The results showed that in the short term, there was no significant influence between CR and DER variables on stock returns, while ROA had a significant effect on stock returns. In the long run, the variables CR and ROA do not have a significant influence on stock returns, while the DER variables have a significant influence on stock returns. The results of the granger causality test show a one-way causality relationship in the variables CR with ROA, and CR with DER. However, no significant causality relationship was found between the other variables.
Stock return, current ratio, debt to equity ratio, return on assets
Performance Analysis of Bank Syariah Indonesia Post-Merger
The establishment of Bank Syariah Indonesia (BSI) marks a significant innovation in the global Islamic economic and financial landscape. This study aims to evaluate the performance of BSI following its merger. The analysis employs the Risk Profile, Good Corporate Governance, Earnings, and Capital (RGEC) method to assess the bank's financial health, revealing a composite score of 96%, categorizing BSI as "very healthy." The findings suggest that BSI not only maintains strong financial stability but also excels in customer satisfaction and internal processes, positioning it well for future growth in the competitive Islamic banking sector.
Transformation of Indonesian Islamic Banking: Opportunities, Challeges, and The Future
This study aims to analyze the transformation of Islamic banking in Indonesia by highlighting key strategic opportunities, major challenges, and future development directions. A descriptive qualitative approach is used, employing a literature review method based on secondary data such as official reports from the Financial Services Authority (OJK), Bank Indonesia, and recent academic publications. The study is grounded in organizational transformation theory, innovation theory, human capital theory, and institutional theory as its analytical framework. The findings reveal that the transformation of Islamic banking is driven by digitalization of financial services, increasing public awareness of Islamic economics, and strong regulatory support. However, the sector continues to face challenges such as limited innovative products, a shortage of competent human resources, and institutional structures that remain dependent on conventional parent banks. The study concludes that the success of Islamic banking transformation in Indonesia requires a holistic strategy encompassing institutional strengthening, human capital development rooted in Islamic values, and collaboration among financial institutions, the halal industry, and regulators. With such strategic efforts, Indonesia holds significant potential to become a global hub for Islamic finance.
Implication of "Best Nabimas Program" As A Competitive Advantage Strategy at BMT Dana Mentari Purwokerto
The Best Nabimas program is BMT Dana Mentari's strategy to increase competitive advantage. This concept takes from the theory of competitive advantage through the Integrated Sharia Economic Learning Program for Handling Problem Financing (Best Nabimas). The research used a qualitative approach and data collection techniques such as interviews, observation, and documentation. Data analysis was done by reduction, presentation, and conclusion drawing, while validity was tested by triangulation. Informants consisted of marketing managers, operational managers, dai-daiyah, and BMT financing members. The results showed that: (1) The Best Nabimas Program is supported by the Best Binamas Program, (2) BMT Dana Mentari integrates the theory of competitive advantage with the handling of problem financing, and (3) The ability of dai-daiyah in handling problems increases
Islamic Bank Merger: How do Perception and Service Quality Shape Customer Trust?
Islamic banking in Indonesia has developed through the merger of three large Islamic banks to increase business coverage and strengthen capital. Good service quality and in accordance with customer expectations are very important to build trust. Public perception of this service will influence their decision to transact. Customer trust, which is built through consistent service and commitment to fairness, is a valuable asset for banks. To survive in the competition, Islamic banks must focus on improving service quality to meet customer expectations, therefore this study aims to investigate the influence of customer perception and service quality on customer trust after the merger of Bank Syariah Indonesia in Samarinda City. The approach used is quantitative, emphasizing on testing theories through measuring research variables with statistical analysis. The variables used are customer perception (X1), service quality (X2), and customer trust (Y). Primary data was obtained through the Lemeshow method with a sample of 100 respondents, using a questionnaire with 10 statements per variable. The results of the study obtained found t-test results showing a t-count value of 5.068 which is greater than the t-table of 1.984. This shows that customer perception partially influences customer trust after the merger of Bank Syariah Indonesia in Samarinda City and the t-test results show a t-count value of 4.373, which is greater than the t-table of 1.984. This shows that service quality partially influences customer trust after the merger of Bank Syariah Indonesia in Samarinda City. The F-test results show an f-count value of 42.766 which is greater than the f-table of 3.09. This shows that the variables of customer perception and service quality simultaneously influence customer trust after the merger of Bank Syariah Indonesia in Samarinda City.
Strategies to Increase Sharia Financial Literacy in Lumajang Regency: The Role of Sharia Banks and Islamic Boarding Schools in Encouraging Financial Inclusion
This study aims to analyze strategies for improving Islamic financial literacy in Lumajang Regency by focusing on the synergy between Islamic banks and Islamic boarding schools as centers of community education. The research method used is qualitative with a case study approach, involving in-depth interviews, participatory observation, and documentation to collect data from various stakeholders involved. The results of the study indicate that although the level of community knowledge regarding Islamic financial literacy is still low, there is significant enthusiasm to learn financial concepts that are in accordance with Islamic principles. The education program implemented by Islamic Banks and Islamic boarding schools has a positive impact on community understanding, although challenges such as low levels of education and access to information still need to be overcome. This study recommends the need for closer collaboration between Islamic Banks, Islamic boarding schools, and the community to create a more inclusive and sustainable program in improving Islamic financial literacy, in order to encourage maximum financial inclusion in Lumajang Regency.
Islamic financial literacy, financial inclusion, Islamic boarding schools, Islamic banks, Lumajang Regency.
Financial Reporting Quality, Debt Maturity, and Investment Efficiency: The Moderating Role of Institutional Ownership
Investment is a step a company takes to use available funds to obtain future profits. An investment is said to be efficient if its results are as expected and planned and there are no conditions of investment inefficiency, namely conditions of underinvestment or overinvestment. This research is quantitative research that uses secondary data sourced from the IDX. The data used are financial reporting quality ratios, debt maturity levels, investment efficiency and institutional ownership in manufacturing industrial companies registered with JII during the 2018-2022 period. The research method uses multiple regression analysis and the MRA (Moderate regression analysis) test with the IBM SPSS Statistics 22 application. The research results show that the variable ratio of financial reporting quality and debt maturity level have a partial and simultaneous effect on investment efficiency. Meanwhile, the results of the MRA test show that institutional ownership is not able to moderate the influence of financial reporting quality on investment efficiency, but institutional ownership can moderate the influence of debt maturity levels on investment efficiency.
quality of financial reporting, debt maturity level, investment efficiency, institutional ownerships
The Effect of Service Quality and Customer Satisfaction on Customer Loyalty through The Religiosity Variable As A Moderating Variable
Loyalty is consumer loyalty to goods and services, because customer loyalty is the highest achievement desired by all companies, because not only repurchases but customers can be a means of promotion and even become a business advisor that is very useful for the company. This study is intended to examine the influence of the variables of Service Quality and Customer Satisfaction on the variable of Customer Loyalty Through the Variable of Religiosity as the moderation variable. This study uses quantitative research, the population in this study is BSI KCP Pemalang Sudirman 1 customers who use cardless withdrawal. The sample in this study amounted to 100 respondents using the accidental sampling technique. Primary data collection was obtained through the distribution of questionnaires through the Google Form application and Questionnaire Sheets distributed to respondents. This study uses the IBM SPSS 25 application. The results of this study show that service quality can directly affect loyalty and get positive and significant results. So is customer satisfaction. Meanwhile, religiosity cannot moderate the variables of service quality or customer satisfaction.
Comparative Analysis of ROA and Strategies of Sharia Commercial Banks in Indonesia During The Pandemic
The COVID-19 pandemic has had an impact on the economy in Indonesia. Sharia Commercial Banks in Indonesia are among the banking sectors that can be said to be affected by the pandemic. This study aims to analyze the comparison of ROA values and identify what strategies can be implemented by Sharia Commercial Banks in Indonesia. This research uses quantitative and qualitative research types. The comparative analysis of ROA values was carried out quantitatively using a paired t-test, while the identification of strategies carried out by Sharia Commercial Banks was carried out qualitatively. The results of this study show that there is a real difference in ROA values during the Pandemic and after the Pandemic. The strategies carried out include: more focused innovation and creativity, digitalization, financing restructuring, as well as synergy between financial institutions and synergy between the parent and subsidiaries.
The Effectiveness of Social Media Marketing Compared to Other Marketing in The Islamic Banking Sector in Indonesia
Technology around the world, including Indonesia, is developing every era. Through the internet network, technology delivers information and services faster. One company whose operations are inseparable from technology is Islamic banking, this company is engaged in providing products and services based on Islamic principles. In the 2020-2025 Islamic banking development roadmap, banks are required to develop technological infrastructure, to serve customers faster, more conveniently, and better. One of the things done to realize this is digital innovation of products and services through social media, supported by the increasing condition of internet users and Indonesia ranks tenth highest in the world in terms of social media use. This is a great opportunity for Islamic banking to develop its business through social media marketing strategies and continue to implement other marketing strategies such as face-to-face interaction, advertising, and brochures. By implementing two marketing strategies, it is necessary to measure their effectiveness. This research was conducted using quantitative methods, using primary questionnaire data, and the EPIC Model consisting of Empathy, Persuasion, Impact, Communication. The data results were processed using SPSS with non-parametric tests and Kruskal Wallis tests, the results of the analysis showed an average effectiveness value of social media marketing of 3.720, greater than other marketing values ​​​​which have an effectiveness value of only 3.605. It is hoped that in the future research can carry out other measurements such as profitability.
The Impact of Sharia Banking Financing Micro, Small, and Medium Enterprises on economic Growth
Islamic banking plays a crucial role in supporting the development of Micro, Small, and Medium Enterprises (MSMEs), which are key drivers of economic growth. This study aims to analyze the impact of Islamic banking financing on MSMEs and its effect on economic growth in South Kalimantan. The research employs multiple linear regression analysis using monthly interpolated data from the Financial Services Authority (OJK) and the Central Bureau of Statistics (BPS) for the period 2016–2022. The findings indicate that MSME working capital financing has a negative and significant effect on economic growth, while MSME investment financing has a positive and significant effect. Meanwhile, labor as a control variable shows a negative but insignificant impact on economic growth. These results highlight the importance of optimizing investment-based financing to enhance economic growth and suggest further evaluation of working capital financing schemes to improve their effectiveness in supporting MSME development.