Research Article
The Analysis of Bank Specific Factors, Macroeconomics and Corporate Governance to Financing Risk in Islamic Commercial Banks in Indonesia
@INPROCEEDINGS{10.4108/eai.27-7-2021.2316921, author={Muhammad Shaf Karim and Ruhadi Ruhadi and Iwan Setiawan}, title={The Analysis of Bank Specific Factors, Macroeconomics and Corporate Governance to Financing Risk in Islamic Commercial Banks in Indonesia}, proceedings={Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICE-BEES}, year={2022}, month={3}, keywords={financing risk (npf) bank specifics macroeconomics corporate governance banks}, doi={10.4108/eai.27-7-2021.2316921} }- Muhammad Shaf Karim
Ruhadi Ruhadi
Iwan Setiawan
Year: 2022
The Analysis of Bank Specific Factors, Macroeconomics and Corporate Governance to Financing Risk in Islamic Commercial Banks in Indonesia
ICE-BEES
EAI
DOI: 10.4108/eai.27-7-2021.2316921
Abstract
Financing Risk is the root of financial instability in the banking sector. The aim of study is analysis of the factors that affect the financing risk level of NPF (non-performing finance) in Islamic banking such as bank-specific factors, macroeconomic factors, and corporate governance factors. This quantitative research utilizes a sample of all Islamic commercial banks in Indonesia for the period of 2015-2019 with analysis instruments of Structural Equation Model-Partial Least Square (SEM-PLS) that using WarpPLS 7.0. The results of data analysis indicate that bank-specific factors represented by CAR, FDR and age each have a significant relationship to NPF. Macroeconomic factors also affect the NPF as shown in the analysis of inflation and GDP data. Finally, corporate governance factors is FBD and BMD, also show their relationship to NPF.