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The Effect of Financing on Credit Risk: Empirically on Indonesian Islamic Banking

Author

Listed:
  • Zaelina, Fitri

    (UIN Sunan Kalijaga Yogyakarta)

  • Nastiti, Dwi

    (Universitas Muhammadiyah Lampung)

Abstract

Islamic banking has an important role in the economy, especially in moving the real sector. Islamic banking provides funding to the public in the form of financing. The financing provided cannot be separated from various risks that can threaten the health of the bank, one of which is financing risk. For that, the purpose of this study is to analyze the effect of financing on financing risk in Islamic banks for the period 2015 to 2020. The method used in this study is quantitative with multiple linear regression analysis techniques. This study uses time-series data and the variables in this study are mudharabah, musyarakah, murabahah, ijarah financing, and total assets as independent variables and NPF as a dependent variable. The results of the study concluded that total assets had a negative and significant effect on NPF and murabahah financing had a positive and significant effect on NPF. Meanwhile, mudharabah, musyarakah, and ijarah financing has no significant effect on NPF.

Suggested Citation

  • Zaelina, Fitri & Nastiti, Dwi, 2021. "The Effect of Financing on Credit Risk: Empirically on Indonesian Islamic Banking," EkBis: Jurnal Ekonomi dan Bisnis, UIN Sunan Kalijaga Yogyakarta, vol. 5(1), pages 1-12, June.
    • Handle: RePEc:ris:ekbisj:1309
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    More about this item

    Keywords

    Mudharabah; Musyarakah; Murabahah; Ijarah; Credit Risk;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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