Assessing Financial Performance's Influence on Financing Risk in Indonesia's Islamic Commercial Banks

Peppy Ayu Efendamara  -  Universitas Islam Indonesia, Yogyakarta, Indonesia
Heri Sudarsono*  -  Universitas Islam Indonesia, Yogyakarta, Indonesia
Andika Ridha Ayu Perdana  -  Universitat de Barcelona, Barcelona, Spain

(*) Corresponding Author
DOI : 10.32678/ijei.v15i2.661

This research aims to determine the long- and short-term relationships between the Return on Asset (ROA), Financing to Deposit Ratio (FDR), Operational Costs to Operational Income (BOPO), Industrial Production Index (IPI), and inflation on financing risk or Non Performing Financing (NPF) at Sharia Commercial Banks in Indonesia. This study uses secondary data obtained from publications by the Financial Services Authority and the Central Statistics Agency for the period January 2015 to June 2023. The the Auto-Regressive Distributed Lag (ARDL) method was used with the help of Eviews 12.0. The results show that in the long term, the ROA variable has a negative and significant effect on NPF. The FDR and BOPO variables have a positive and significant effect on NPF. However, Inflation and IPI variables have no long-term effect on NPF. In the short term, ROA and BOPO influence NPF. Meanwhile, the FDR, Inflation and IPI variables had no influence on NPF in the short term.

Keywords : Non Performing Financing; Islamic Commercial Bank; ROA; FDR; BOPO

  1. Angraini, D., Sudarsono, H., Anindita, S. (2020). Influence of financial performance and macroeconomic factors on financing risk in Islamic banks. Asian Journal of Islamic Management, 2(2), 138-152. doi: https://doi.org/10.20885/ajim.vol2.iss2.art6.
  2. Accornero, M., Cascarino, G., Felici, R., Parlapiano, F., Sorrentino, A.M. (2018). Credit risk in banks’ exposures to non-financial firms: credit risk in banks’ exposures to non-financial, European Financial Management, 24(5), 775-791. https://doi.org/10.1111/eufm.12138.
  3. Ascarya and Yumanita, D. (2008). Comparing the efficiency of Islamic banks. Bulletin of Monetary Economics and Banking 11(2): 96–196.
  4. Asnaini, S. W. (2014). Faktor-faktor yang mempengaruhi non performing financing (NPF) pada bank umum syariah di Indonesia. Jurnal TEKUN, 5(2), 264-280
  5. Budiman, R., Achsani, N. A., & Ismal, R. (2018). Risiko Pembiayaan dan Determinannya pada Perbankan Syariah di Indonesia. Jurnal Aplikasi Bisnis dan Manajemen, 151–159. https://doi.org/10.17358/jabm.4.1.151
  6. Chamberlain, T., Hidayat, S., Khokhar, A.R. (2020). Credit risk in Islamic banking: Evidence from the GCC. Journal of Islamic Accounting and Business Research, 11(5), 1055-1081. https://doi.org/10.1108/JIABR-09-2017-0133
  7. Dewantara, A., & Bawono, A. (2020). Influence Analisys of Mudharabah, Musharakah, and Murabahah Financing To Profitability of Sharia Commercial Bank in Indonesia 2016-2019 With Non Performing Financing As Intervening Variable. ISLAMICONOMIC: Jurnal Ekonomi Islam, 11(2). https://doi.org/10.32678/ijei.v11i2.197.
  8. Effendi, J., Thiarany, U., Nursyamsiah, T. (2017). Factors Influencing Non-Performing Financing (NPF) in Sharia Banking. Walisongo: Jurnal Penelitian Sosial Keagamaan 25(1): 109. https://doi.org/10.21580/ws.25.1.1540
  9. Fatmafuli, E., & Moin, A. (2022). Pengaruh return on asset, biaya operasional dan pendapatan operasional, dan financing to deposit ratio terhadap non performing financing pada bank Syariah dengan financial constraints sebagai variabel moderasi. Selekta Manajemen: Jurnal Mahasiswa Bisnis & Manajemen, 1(1), 248–269. https://journal.uii.ac.id/selma/article/view/23864
  10. Haifa, H., & Wibowo, D. (2015). Pengaruh faktor internal bank dan makro ekonomi terhadap non performing financing perbankan syariah di Indonesia: Periode 2010:01 – 2014:04. Nisbah: Jurnal Perbankan Syariah, 1(2), 74. https://doi.org/10.30997/jn.v1i2.253
  11. Hellen, H., Fadrul, F., & Asyik, N. F (2019). Analysis of the influence of capital adequacy ratio (CAR), non performing financing (NPF), net operating margin (NOM), operational cost and revenue (BOPO), and finance to deposit ratio (FDR) on the financial performance of Syariah banking in indonesia year 2011-2017. Kurs : Jurnal Akuntansi, Kewirausahaan dan Bisnis, 4(2), 181-191. https://repository.stiesia.ac.id/id/eprint/5111/1/1.%20Artikel_Analysis%20of%20the%20Influence.PDF
  12. Ikramina, C., Sukmaningrum, P. S. (2021). Macroeconomic factors on non-performing financing in Indonesian Islamic banks: The Error Correction Model Approach. Jurnal Ekonomi dan Bisnis Islam (Journal of Islamic Economics and Business), 7(1), p.34. https://doi.org/10.20473/jebis.v7i1.23647
  13. Iqbal, M. ., & Anwar, S. . (2022). Pengaruh capital adequacy ratio, non performing financing, financing to deposit ratio, operational efficiency ratio, dan profit-sharing ratio terhadap kinerja keuangan bank umum syariah. Jurnal Revenue : Jurnal Ilmiah Akuntansi, 2(2), 259-270. https://doi.org/10.46306/rev.v2i2.69
  14. Kuswahariani, W., Siregar, H., & Syarifuddin, F. (2020). Analisis NON PERFORMING FINANCING (NPF) secara umum dan segmen mikro pada tiga bank Syariah nasional di Indonesia: Non performing financing analysis with regard to a general and micro segment on three national Sharia banks in Indonesia. Jurnal Aplikasi Bisnis dan Manajemen (JABM), 6(1), 26. https://doi.org/10.17358/jabm.6.1.26
  15. Lisa, L. F., & Yusvita Nena Arinta. (2023). Pengaruh Capital Adequacy Ratio (CAR), Kualitas Aktiva Produktif (KAP), dan Non Performing Financing (NPF) terhadap kinerja keuangan dengan likuiditas perusahaan sebagai variabel intervening pada bank umum Syariah di Indonesia Periode 2017 – 2021. Jurnal Manajemen Perbankan Keuangan Nitro, 6(1), 1–13. https://doi.org/10.56858/jmpkn.v6i1.88
  16. Munir, M. (2018). Analisis pengaruh CAR, NPF, FDR dan inflasi terhadap profitabilitas perbankan Syariah di Indonesia. Ihtifaz: Journal of Islamic Economics, Finance, and Banking, 1(1), 89. https://doi.org/10.12928/ijiefb.v1i1.285
  17. Nugroho, L., Suganda, A. D., Febrianty, F., Labetubun, M. A. H., Ihwanudin, N., Trimulato, T., ... & Anwar, A. (2020). Pengantar Perbankan Syariah.
  18. Rofi’ah, K. & A’yun, A.’A (2020). Faktor-faktor Non-Performing Financing (NPF) di bank umum Syariah Indonesia. Jurnal Ekonomi, 24(3), 452-467. https://doi.org/10.24912/je.v24i3.609
  19. Siddique, A., Khan, M.A. and Khan, Z. (2022), The effect of credit risk management and bank-specific factors on the financial performance of the South Asian commercial banks, Asian Journal of Accounting Research, 7(2), 182-194, https://doi.org/10.1108/AJAR-08-2020-0071
  20. Sudarsono, H., Sholihin, M. & Susamto, A.A. (2024), Bank ownership and credit risk: an empirical study of Indonesian Islamic local banks, Journal of Islamic Accounting and Business Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIABR-02-2023-0069
  21. Sudarsono, H. (2017). Analisis pengaruh kinerja keuangan terhadap profitabilitas bank Syariah di Indonesia. Economica: Jurnal Ekonomi Islam, 8(2), 175–203. https://doi.org/10.21580/economica.2017.8.2.1702
  22. Sudarsono, H. (2018). Analisis pengaruh variabel mikro dan makro terhadap NPF perbankan Syariah di Indonesia. Equilibrium: Jurnal Ekonomi Syariah, 6(1), 1. https://doi.org/10.21043/equilibrium.v6i1.3040.
  23. Suganda, A. D., Anita, A., & Wulandari, S. (2023). How to Overcome the Risk of Islamic Banks: Evidence from Indonesia. El Barka: Journal of Islamic Economics and Business, 6(1), 48-78. https://doi.org/10.21154/elbarka.v6i1.6795.
  24. Syachreza, D., & Mais, R. (2020). Analisis pengaruh CAR, NPF, FDR, Bank Size, BOPO terhadap kinerja keuangan bank umum Syariah di Indonesia. Jurnal Akuntansi dan Manajemen, 17(1), 25 - 37. https://doi.org/10.36406/jam.v17i01.326
  25. Umami, D. R., & Rani, L. N. (2021). Faktor-faktor yang mempengaruhi non performing financing bank pembiayaan rakyat Syariah periode 2015-2019. Jurnal Ekonomi Syariah Teori dan Terapan, 8(4), 483. https://doi.org/10.20473/vol8iss20214pp483-495
  26. Vanni, K. M., & Rokhman, W. (2017). Analisis faktor-faktor yang mempengaruhi non performing financing pada perbankan Syariah di Indonesia tahun 2011-2016. EQUILIBRIUM: Jurnal Ekonomi Syariah, 5(2), 306–319. https://smartlib.umri.ac.id/assets/uploads/files/2329b-2776-9677-1-pb.pdf
  27. Widarjono, A. (2020). Stability of Islamic banks in Indonesia: Autoregressive Distributed Lag Approach. Jurnal Keuangan dan Perbankan, 24(1), 40–52. https://doi.org/10.26905/jkdp.v24i1.3932
  28. Wijoyo, S. (2016). Analisis faktor makroekonomi dan kondisi spesifik bank Syariah terhadap Non-Performing Finance (Studi pada bank umum Syariah dan unit usaha Syariah yang ada di Indonesia Periode 2010:1- 2015:12). Jurnal Pendidikan dan Ekonomi, 5(6), 513–525. http://journal.student.uny.ac.id/ojs/index.php/ekonomi/article/view/4830
  29. Wulandari, S., & Suganda, A. D. (2021). Determining factors of earnings management based on accrual model. Jurnal Akuntansi dan Auditing Indonesia, 45-53. https://doi.org/10.20885/jaai.vol25.iss1.art5.

ISLAMICONOMIC: Jurnal Ekonomi Islam
Published by Departement of Islamic Economics, UIN Sultan Maulana Hasanuddin Banten - Indonesia

Main Building of Faculty of Islamic Economics and Business, UIN Sultan Maulana Hasanuddin Banten, Jenderal Sudirman Street, No. 30 Serang 42188 Banten Indonesia
Phone: +62 81511475475
Website: https://journal.islamiconomic.or.id/
Email: asep.dadan@uinbanten.ac.id

ISSN: 2085-3696 (Print)
ISSN: 2541-4127 (Online)

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

Get a feed by atom here, RRS2 here and OAI Links here

apps