Factors Affecting Financing on Islamic Rural Bank in Yogyakarta and Central Java Province

Abstract

The study aims to examine the factors that influence the amount of financing disbursed by Islamic Rural Banks. This study uses a sample of Islamic Rural Banks located in the Province of the Special Region of Yogyakarta and Central Java. The data was taken from the quarterly financial reports of Islamic Rural Banks available on the OJK official website from 2018 to 2020 and the number of samples is 37 Islamic Rural Banks. The tests were carried out using the SPSS version 22.0 program for windows. The results of this study indicate that Third Party Funds (TPF), Capital Adequacy Ratio (CAR), and Financing to Deposit Ratio (FDR) have a positive and significant effect on Islamic Rural Banks financing. Non-Performing Finance (NPF) has a negative and significant effect on the financing of Islamic Rural Banks. Meanwhile, the Operational Cost of Operating Income (OEIR) has no significant effect on the financing of Islamic Rural Banks.