THE ANALYSIS OF NON PERFORMING FINANCING (NPF) DETERMINANTS ON INDONESIAN ISLAMIC BANKING (PERIOD FROM JANUARY 2003 - MARCH 2013)
Abstract: This study aims to
analyze the factors affecting the Non Performing Financing (NPF) Sharia banking
in Indonesia.The factors examined are Economic Performance (EK), Total
Financing (FIN), Financing Rate (FR), Dummy Global Financial Crisis (D07) and
Inflation Rate (INF).The method used is Cointegration Test.The data used are
monthly data.The study time period is from January 2003 to March 2013. Based on
the results of statistical analysis it show that each of independent variables,
is significantly influence the growth of NPF (non-performing financing) Sharia
banking in Indonesia.Results of the study give the implication that the Islamic
banking should be correctly applying the precautionary and prudential
principles, in providing financing to customers to avoid high NPF in Islamic
banking. And the Government as the highest authority of the banking
institution, expected to support the financing of Islamic banking sector of the
economy by establishing the independent agency, which helped the bank to assess
the eligibility of prospective business who proposed financing on Islamic
banking
Keywords: Indonesian Sharia
Banking, NPF (Non Performing Financing), Financing, Dummy of Global Financial
Crisis
Penulis: Mohammad Nasih
Kode Jurnal: jpmanajemendd131199
