ABSTRACT

The performance of Islamic banks in Indonesia has experienced inconsistent growth year by year. This is indicated by the data that the growth of fund collection has fluctuated since 2015-2019 as follows; 6.35%; 20.84%; 19.89%; 11.14%; 10.28%. Likewise, the growth in distribution of funds from 2015-2019 fluctuated as many 7.06%; 16.41%; 15.24%; 12.21%; 14.15%. In shorth, the distribution of funds is largely dominated by murabahah contracts rather than mudharabah and musyarakah contracts. One of the reasons is because murabahah contract is less risky than the mudharabah and musyarakah contracts. Therefore, the aim of this study is to develop a risk management model for Islamic banks based on a portfolio balancing strategy. The research method is to review previous references related to the Islamic Bank and portfolio strategy, and analyze its weaknesses as a basis for developing a new model in Risk Management for Islamic Bank. The results show that the Risk Management Model for Islamic Bank Based on Portfolio Balancing Strategy is very appropriate to be applied in the risk management of Islamic Bank, so that it can minimize the risk of financing and risk of channeling funds, and can optimize the role of Islamic banks in empowering the real sector.

Keywords: risk management model, murabahah, mudharabah, musyarakah, portfolio strategy balancing.