Risks Of Sharia Commercial Bank In Indonesia: Analysis Of Internal And External Factors

Erlinda Kurnia Aufa*  -  Universitas Islam Negeri Walisongo Semarang, Indonesia
Cita Sary Dja'akum  -  Universitas Islam Negeri Walisongo Semarang, Indonesia

(*) Corresponding Author
DOI: 10.21580/al-arbah.2019.1.1.4137

Purpose - This study aims to analyze the effect of inflation, gross domestic product (GDP), capital adequacy ratio (CAR), and financing to deposit ratio (FDR) to non performing financing (NPF) at Islamic Commercial Banks in Indonesia.

Method - The research approach used is a quantitative approach. Determination of samples is done by purposive sampling method. The data used is secondary data, obtained from publication reports on the official website of each Sharia Commercial Bank, Bank Indonesia, and the Central Statistics Agency. The population in this study were all Islamic Commercial Banks registered in the Statistics of Islamic Banking in Indonesia for the period 2013-2017. Based on the specified criteria, five Sharia Commercial Banks were obtained as research samples. This study uses panel data regression analysis with the Fixed Effects Model approach which is processed through the Eviews 10 program.

Result - The results of hypothesis testing show that partially Inflation has a positive but not significant effect on NPF, GDP has a significant negative effect on NPF, CAR has a negative but not significant effect on NPF, and FDR has a significant negative effect on NPF. Simultaneously inflation, GDP, CAR, and FDR have a significant effect on NPF.

Implication - This study uses all data from commercial Islamic bank.

Originality - This study analyzes the determining factors that influence financing risks from both internal and external factors.

Keywords: Non Performing Financing; Inflation, Gross Domestic Product; Capital Adequacy Ratio; Financing to Deposit Ratio.

  1. Amin, Rukhul, Haqiqi Rafsanjani and Abdul Mujib. (2017). "Factors affecting Non-Performing Financing: Case studies on Sharia banks and BPR in Indonesia", Masharif al-Syariah journal: Sharia Economics and Banking Journal, Vol. 2, No. 2:2.
  2. Asnaini, Sri Wahyuni. (2014). "Factors affecting Non-Performing Financing (NPF) on sharia Bank in Indonesia", Diligent Journal, Vol. 5, No. 02:265.
  3. Auliani, Mia Maraya and Syaichu. (2016). "Analysis of the influence of Internal factors and external factors to the level of problem financing in Sharia banks in Indonesia period year 2010-2014", Diponegoro Journal of Management, Vol. 05, No. 03:1.
  4. Mutamimah and Siti Nur ZaidahChasanah. (2012). "External and Internal analysis in determining Non-Performing Financing of Sharia public Bank in Indonesia", Business and Economic Journal, Vol. 19, No. 01:54.
  5. Muhammad. (2014). "Causal factors for problematic financing in Indonesian Sharia financing Bank", Economics and Business Journal, Vol. 08, No. 02:83.
  6. Heffernan, Shelagh. (2005). Modern Banking. Chichester: John Wiley & Sons.
  7. Association of Indonesian bankers. (2015). Managing the Sharia Bank financing business Syariah Financing Certification module I, Jakarta: PT GramediaPustaka Utama.
  8. Machmud, Amir and Rukmana. Bank Syariah, Jakarta: Erlangga, 2010.
  9. Mashturoh, Aidah, Efriyanto and Herbirowo Nugroho. (2015) "The influence of Gross Domestic Product and inflation on Non-Performing Financing in PT Bank Muamalat Indonesia period 2006-2013", Journal of Accounting, Finance and Banking, Vol. 01, No. 04:316.
  10. Misman, FaridahNajuna, Ishaq Bhatti, Weifang Lou, SyamsyulSamsudin and Nor Hadaliza Abd Rahman. (2015). "Islamic Banks Credit Risk: A Panel Study". Procedia Economics and Finance 31, 75 – 82.
  11. Poetry, ZakiyahDwi and Yulizar D Sanrego. (2011). "Macro and Micro variable influence on NPL conventional banking and Sharia banking NPF", Tazkia, Vol. 06, No. 02:95.
  12. Popita, the Holy Mares of Ana. (2013). "Analysis of the cause of Non-Performing Financing of Sharia Bank in Indonesia", Journal of Accountancy, Vol. 02, No. 04:405.
  13. Purnamasari, Amalia Eka and Musdholifah. (2016). " Analysis of external and Internal Bank factors against the risk of financing Sharia Bank in Indonesia period 2012-2015 ", business and Management, Vol. 9, No. 1:14.
  14. Setiawan, Chandra and Monita Eggy Putri. (2013). "Non-Performing Financing and Bank Efficiency of Islamic Banks in Indonesia". Journal of Islamic Finance and Business Research. Volume 2 number 1, 58-76.
  15. Shingjergi, Ali. and Iva Shingjergi. (2013). “An Analysis of the Nonperforming Loans in the Albanian Banking System”. International Journal of Business and Commerce.Volume 2. No. 6, 01-11.
  16. Wibowo, Dedi and Haifa. (2015) "The Influence of Internal and Macroeconomic Factors on Non-Performing Financing of Sharia Banking in Indonesia: 2010 Period: 01-2014: 04", Nisbah Journal, Vol. 01, No. 02: 76.

Open Access Copyright (c) 2019 Erlinda Kurnia Aufa, Cita Sary Dja'akum
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Al-Arbah: Journal of Islamic Finance and Banking
Published by Department of Sharia Banking, Faculty of Islamic Economics and Business, UIN Walisongo Semarang, Indonesia
Jl Prof. Dr. Hamka Kampus III Ngaliyan Semarang 50185
Phone: +62 852-3660-5533
Website: https://febi.walisongo.ac.id/
Email: alarbah@walisongo.ac.id

ISSN: 2716-3946 (Print)
ISSN: 2716-2575 (Online)

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License

 
apps