<![CDATA[Peer-to-peer lending within the financial technology sector has undergone significant expansion in Indonesia. Islamic banks, complying to Sharia principles, offer a distinct perspective within the peer-to-peer lending sector. This study aims to examine the impact of peer-to-peer lending on the profitability of Islamic banks in Indonesia. The dataset consists of 72 monthly time series from sharia commercial banks and sharia business units, obtained from the Financial Services Authority (OJK) covering the period from 2018 to 2023. The ECM Model is employed to assess the duration of the short-term imbalance that will endure over time. The return on assets functions as the dependent variable, whereas the independent variables comprise loan disbursement in fintech P2P lending, operating expense ratio , loan-to-asset ratio, branch banking, bank size, and BI rate. The data indicated that fintech has a significant and positive impact on the operations of sharia commercial banks. Other variables that significantly influence ROA include operating expense ratio (OER), loan-to-asset ratio, bank size, and BI rate. This finding highlights the strategic importance of collaborations between peer to-peer lending platforms and Islamic institutions.]]>
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