Determinant of Non-Performing Financing in Indonesian Islamic Commercial Banks in time of Covid-19 Pandemic

Chalid, Fitria Idham; Bella, Firsty Izzata

doi:10.24235/amwal.v13i2.9072

Cited by 5 publications

(9 citation statements)

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“…Within five years, namely 2017-2021, the condition of the BPRS' FDR was 107.93%. The high FDR value reflects a larger distribution of funds than collection and, where this can have implications for reduced bank liquidity and lead to increased NPF conditions (Chalid & Bella, 2021). Excess liquidity conditions are a demand for banks to channel funds to customers with little regard to business risks and the risk of problematic financing that can occur (Munifatussa, 2020).…”

Section: Figure 1 Npf Condition On Bprsmentioning

confidence: 99%

The Influence of Bank Specific Factors and Macro Economics on Non-Performing Financing in Islamic Rural Banks

Ramadhani,

Mai,

Novianty

2023

Indones. J. Econ. Manag.

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During 2017-2021, the BPRS NPF ratio has exceeded the threshold set by the Financial Services Authority, which is 7%. The average NPF ratio of BPRS for the 2017-2021 period is 8.25% (Otoritas Jasa Keuangan, 2022).. The population in this study are Islamic Rural Banks in Indonesia, namely 167 Islamic People's Financing Banka. The samples in this study were 157 Islamic Rural Banks. The sampling technique in this study used purposive sampling. Based on the discussion and results, ROA, CAR, FDR, Inflation, GDP, and unemployment on the dependent variable, namely NPF at Islamic Rural Banks during 2017-2021, the results show that ROA has a negative effect on NPF while FDR and inflation have a positive effect on NPF. Meanwhile CAR, GDP, and unemployment have no effect on NPF at Islamic Rural Banks in Indonesia.

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Section: Figure 1 Npf Condition On Bprsmentioning

confidence: 99%

The Influence of Bank Specific Factors and Macro Economics on Non-Performing Financing in Islamic Rural Banks

Ramadhani,

Mai,

Novianty

2023

Indones. J. Econ. Manag.

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“…The amount of nonperforming loans in the banking industry is also influenced by local and global economic situations. Because non-performing loans were seen as a failure and crisis of the banking sector following the global financial crisis, they were primarily overseen by the government and banking management (Chalid & Bella, 2021, Khan et al, 2020.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Credit Risk and Board Diversity on the Performance of Banks Listed on the Indonesian Stock Exchange

Suhardono,

Simamora,

Agung

et al. 2024

IJIBE

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This research aims to analyze the influence of several factors on banking performance in Indonesia, with a focus on Return on Assets (ROA). The factors studied include the Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL) ratio, Expected Credit Loss Provision (CKPN) ratio, Earning Ability (BOPO), Loan to Deposit Ratio (LDR), and Board Diversity (BD). Data was taken from banking companies listed on the Indonesia Stock Exchange in the period 2018 to 2022. The analysis method uses a linear regression test with a Fixed Effect Model. The research results show that the NPL ratio, CKPN ratio, BOPO, LDR, and BD have a significant influence on banking performance, while CAR does not have a significant influence. These results provide important information for investors and managers in managing banks, as well as being the basis for further research in identifying other factors that influence banking performance in Indonesia.�

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“…Besides the roughness of financial activities channeled to the community, a problem is also observed namely non-performing financing (Mishra et al, 2021). In Islamic banking, financing risk (NPFs) is an indicator showing the quality of disbursed funds and its high value often lead to the occurrence of problematic funding (Chalid & Bella, 2021;Sudarsono & Ash Shiddiqi, 2022). This indicates that the financing quality of sharia commercial banks and businesses is maintained with an average NPFs below the 5% threshold in Indonesia.…”

Section: Introductionmentioning

confidence: 99%

What are the Determinants Affecting the Financing Risk in Indonesian Sharia Rural Banks?

Suhel

Bashir²,

Asngari³

et al. 2022

muqtasid

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Rapid and dynamic changes in the financial and economic systems are posing various risks and instabilities to Islamic banking institutions. Therefore, this study aims to investigate the impact of macroeconomic factors and bank abilities on financing risk in Indonesia. In this analysis, the 2005-2019 sharia banking statistics at 92 rural banks were emphasized in the country. A panel data regression was also employed with the fixed effect method during the experimental procedure. The results showed a negative and significant relationship between economic growth, FDR (financing to deposit ratio), and CAR (capital adequacy ratio) toward financing risk. Moreover, a positive and significant relationship was found between the benchmark loan rate on financing risk, although inflation had no significant effect. Economic growth was also a key factor influencing financing risk in the sharia rural banks sector. Based on these results, banking regulators were found to operate according to sharia principles, to selectively optimize and carefully monitor financial distribution and activities with high financing risk.

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Determinant of Non-Performing Financing in Indonesian Islamic Commercial Banks in time of Covid-19 Pandemic

Cited by 5 publications

References 0 publications

The Influence of Bank Specific Factors and Macro Economics on Non-Performing Financing in Islamic Rural Banks

The Influence of Bank Specific Factors and Macro Economics on Non-Performing Financing in Islamic Rural Banks

The Effect of Credit Risk and Board Diversity on the Performance of Banks Listed on the Indonesian Stock Exchange

What are the Determinants Affecting the Financing Risk in Indonesian Sharia Rural Banks?

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