<![CDATA[This study is motivated by the rapid growth of Islamic banking in Indonesia accompanied by a projected increase in the non-performing financing ratio according to S&P Global Ratings (2026), as well as persistent empirical inconsistencies and limited studies on the effects of bank size and equity-based financing on non-performing financing. This study aims to analyze the effects of capital adequacy ratio, operational efficiency, financing disbursement ratio, bank size, and equity-based financing on non-performing financing in Indonesian Islamic Commercial Banks over the period 2021–2025. A quantitative approach is employed using secondary data from quarterly financial reports of eight Islamic Commercial Banks selected through purposive sampling, yielding 160 panel observations. The analytical method used is panel data regression with Fixed Effect Model and Driscoll-Kraay Standard Errors. The results show that capital adequacy ratio and bank size have a significant negative effect on non-performing financing, while operational efficiency and equity-based financing have a significant positive effect. The financing disbursement ratio shows no significant effect on non-performing financing. These findings indicate that financing quality in Islamic Commercial Banks is influenced by capital adequacy, operational efficiency, bank size, and the characteristics of profit-sharing based financing, rather than by the level of financing disbursement alone. This study contributes to strengthening the empirical evidence on internal determinants of non-performing financing and carries implications for improving financing risk management in Islamic banking.]]>
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