Analysis of Factors that can Improve the Effectiveness of Murabahah Financing at PT. BPRS Tanggamus

Abstract

This study aims to analyze the factors that contribute to improving the effectiveness of murabahah financing at PT. BPRS Tanggamus, Indonesia. A qualitative approach with a case study design was employed. Data were collected through in-depth interviews, direct observations, and documentation involving bank management, financing officers, and murabahah financing customers. Data analysis followed the interactive model of Miles, Huberman, and Saldaña, consisting of data condensation, data display, and conclusion drawing. The findings identify six interconnected factors contributing to murabahah financing effectiveness: financing eligibility assessment based on the 5C principles, Account Officer competence, continuous financing monitoring, service quality, sharia compliance, and customers’ economic conditions. Comprehensive financing analysis supports appropriate financing decisions and risk mitigation, while competent financing officers and consistent monitoring facilitate early identification of repayment difficulties. Transparent contracts and responsive services strengthen customer trust, whereas economic instability may reduce repayment capacity. However, inconsistencies in monitoring practices and limitations in officer competencies remain operational challenges. The study concludes that improving murabahah financing effectiveness requires an integrated management approach combining prudent financing assessment, professional human resources, continuous supervision, and adherence to sharia principles. These findings provide practical implications for strengthening financing management and supporting sustainable Islamic rural banking operations.