The Influence of Internal and External Factors on Non-Performing Financing at Islamic Commercial Banks in 2018-2022

Putri Novia Rahmawati (Universitas Swadaya Gunung Jati, Indonesia)
Gita Syafira Setiady (Universitas Swadaya Gunung Jati, Indonesia)
Mardi Mardi (Universitas Swadaya Gunung Jati, Indonesia)
Itah Miftahul Ulum (Universitas Swadaya Gunung Jati, Indonesia)

Jurnal Indonesia Sosial Teknologi
Vol. 5 No. 10 (2024): Jurnal Indonesia Sosial Teknologi

Financing is one of the main functions in Islamic banking, the risk that can occur in such financing is non-performing financing or Non-Performing Financing (NPF). This study aims to determine the factors that affect the NPF of Islamic commercial banks in the period 2018-2022, the variables used in this study are Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Inflation, and Gross Domestic Product (GDP), this study uses a quantitative approach, using panel data regression analysis with the Generalized Least Square (GLS) estimation method. Partially, the CAR variable has a positive effect on NPF, the FDR variable has a negative effect on NPF, while the Inflation and GDP variables have no effect on NPF