Journal of Islamic Economics and Philanthropy
Vol. 7 No. 1 (2024): August

The Influence of Macroeconomic Variables on Non-Performing Finance in Sharia Commercial Banks

Agus Salim (Universitas Ahmad Dahlan)
Annisa Eka Zakiyah (Universitas Ahmad Dahlan)



Article Info

Publish Date
09 Jul 2026

Abstract

One of the advantages of the sharia banking business is financing productive sectors that do not contain haram elements. Financing in the micro, small and medium sectors is a sharia banking financing business line, but there is a big risk of bad credit. In recent years, increasing global and domestic economic uncertainty has led to depreciation of the exchange rate, unstable prices of basic commodities, thereby reducing people's purchasing power. This research aims to examine macroeconomic variables such as the exchange rate, inflation and production index as a proxy for GDP towards NPF of sharia banking. The research uses monthly time-series data and the OLS method. The research results show that macroeconomic variables have an influence on NPF. The research implication is that the stability of macroeconomic conditions can maintain people's purchasing power which can influence the NPF level of sharia banking.

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Journal Info

Abbrev

jiep

Publisher

Subject

Description

The Journal of Islamic Economics and Philanthropy (JIEP) is published quarterly in August, November, February, and May. The journal accepts only original empirical research, theoretical contributions, and systematic literature reviews. JIEP focuses on the intersection of Islamic economics and ...