Research Article
Analysis Of Determinants Of Credit Risk And Non-Performing Financing (Npf) In Islamic Banks (A Study On Islamic Banks Registered With The Financial Services Authority (Ojk))
@INPROCEEDINGS{10.4108/eai.4-9-2024.2353782, author={Ayi Saprudin and Sudrajat Sudrajat and Usep Saepudin}, title={Analysis Of Determinants Of Credit Risk And Non-Performing Financing (Npf) In Islamic Banks (A Study On Islamic Banks Registered With The Financial Services Authority (Ojk))}, proceedings={Proceedings of the 7th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2024, 4-5 September 2024, Shah Alam, Selangor, Malaysia}, publisher={EAI}, proceedings_a={ICEBE}, year={2024}, month={12}, keywords={credit risk internal factors panel data non-performing financing (npf) islamic commercial banks}, doi={10.4108/eai.4-9-2024.2353782} }- Ayi Saprudin
Sudrajat Sudrajat
Usep Saepudin
Year: 2024
Analysis Of Determinants Of Credit Risk And Non-Performing Financing (Npf) In Islamic Banks (A Study On Islamic Banks Registered With The Financial Services Authority (Ojk))
ICEBE
EAI
DOI: 10.4108/eai.4-9-2024.2353782
Abstract
This research aims to test the influence of internal credit risk factors on Non-Performing Financing (NPF) at Islamic Commercial Banks in Indonesia. The Islamic banking industry in Indonesia has experienced significant growth in recent years. Along with this growth, credit risk has also increased due to fluctuating economic conditions. The fluctuating NPF value can lead to problematic financing and the risk of default. Internal credit risk factors consist of Financing to Deposit Ratio (FDR), Return on Assets (ROA), Capital Adequacy Ratio (CAR), Operating Expense to Operating Income Ratio (BOPO). This research uses secondary data from the annual financial reports of Islamic banks registered with OJK from 2021 to 2023. The data is analyzed using a panel data model FEM (Fixed Effect Model) with multiple linear regression using the Ordinary Least Square (OLS) method. The results of this study found that the FDR and CAR variables significantly influence NPF at Islamic Commercial Banks. Meanwhile, other variables such as ROA and BOPO do not have a partial effect on NPF at Islamic Commercial Banks. However, simultaneously, all variables FDR, CAR, ROA and BOPO have an effect on NPF at Islamic Commercial Banks.
