The Impact of Internal and External Variables on Non-performing Financing (NPF) of Islamic Banks in Indonesia
Abstract
Islamic banking financing continues to experience better growth and provides great contributions in Indonesia. This industry must innovate products and improve its performance. This research paper aims to improve the Non-Performing Financing (NPF) and efficiency model of Islamic commercial banks in Indonesia while enhancing the quality of governance in the banking industry. In this study, researchers used Data Envelopment Analysis (DEA) to process overall technical efficiency (OTE) and panel regression to establish the causal relationship between independent and dependent variables, both partially and simultaneously. Researchers also analyzed the correlational association between NPF and the efficiency of Islamic banks in Indonesia. The data used in the study were obtained from Islamic commercial banks that were consistently published by Bank Indonesia and the Bank's database. Various micro or internal banking variables were used, and external variables, such as macro variables, were found to influence NPF. The study identified internal variables like CAR and FDR and external variables like GDP and inflation of Islamic banking in Indonesia that significantly impact NPF. Furthermore, the study results suggest that the FDR variable is among the significant variables with the highest significance value. It was also found that the "bad management" and "bad luck" hypotheses were not proven in Islamic banking in Indonesia.
Keywords
Full Text:
PDFReferences
Akber, S. M. (2019). Relationship between Profitability and Non-Performing Loan and A Comparative Financial Performance Analysis of Shari’ah Based Banks of Bangladesh. Indian Journal of Finance and Banking, 3(2), 32–42. https://doi.org/10.46281/ijfb.v3i2.448
Al Rahahleh, N., Bhatti, M. I., & Misman, F. N. (2019). Developments in Risk Management in Islamic Finance: A Review. Journal of Risk and Financial Management, 12(1), 37. https://doi.org/10.3390/jrfm12010037
Bachtiar, D. I., Atmoko, A. D., & Priyanti, T. S. (2014). Implementasi Sistem Informasi Akuntansi bagi Usaha Kecil dan Menengah dalam Meningkatkan Akuntabilitas Laporan Keuangan. Jurnal Ekonomi Dan Teknik Informatika, 2(1).
Badruzaman, J. (2020). Analisis Efiensi Dan Kinerja Bank Syariah Di Indonesia. Jurnal Akuntansi, 15(1).
Berger, A. N., & Humphrey, D. B. (1997). Efficiency of financial institutions: International survey and directions for future research. European Journal of Operational Research, 98(2), 175–212. https://doi.org/10.1016/S0377-2217(96)00342-6
Berger, A. N., & Mester, L. J. (1997). Inside the black box: What explains differences in the efficiencies of financial institutions? Journal of Banking & Finance, 21(7), 895–947. https://doi.org/10.1016/S0378-4266(97)00010-1
Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. SAGE Publications, Inc.
Effendi, J., Thiarany, U., & Nursyamsiah, T. (2017). Factors Influencing Non-Performing Financing (NPF) at Sharia Banking. Walisongo: Jurnal Penelitian Sosial Keagamaan, 25(1), 109. https://doi.org/10.21580/ws.25.1.1540
Fahmi, I. (2014). Analisis laporan keuangan. Alfabeta.
Farika, M., Achsani, N. A., & Johan, S. (2018). The Deteminant of Bank Credit Risk: Comparative Analysis of Conventional and Islamic Banks in Indonesia. European Journal of Accounting, Auditing and Finance Research, 6(3), 15–31.
Farrell, M. J. (1957). The Measurement of Productive Efficiency. Journal of the Royal Statistical Society. Series A (General), 120(3), 253. https://doi.org/10.2307/2343100
Fianto, B. A., Maulida, H., & Laila, N. (2019). Determining factors of non-performing financing in Islamic microfinance institutions. Heliyon, 5(8), e02301. https://doi.org/10.1016/j.heliyon.2019.e02301
Financial Services Authority/OJK. (2024). Sejarah Perbankan Syariah. https://ojk.go.id/id/kanal/syariah/tentang-syariah/Pages/Perbankan-Syariah.aspx
Firdaus, M. (2020). Aplikasi Ekonometrika dengan E-Views, Stata dan R. IPB Press.
Fortrania, L. M., & Oktaviana, U. K. (2016). Analisis Tingkat Kesehatan Bank Umum Syariah Dan Unit Usaha Syariah Dengan Metode Camels Dan Rgec. EL DINAR: Jurnal Keuangan Dan Perbankan Syariah, 3(1). https://doi.org/10.18860/ed.v3i1.3341
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25. Universitas Diponegoro.
Hassan, M. K. (2006). The X-Efficiency in Islamic Banks. Islamic Economic Studies, 13(2), 49–79.
Hsiao, C. (2014). Analysis of Panel Data. Cambridge University Press. https://doi.org/10.1017/CBO9781139839327
Khan, M. A., Siddique, A., & Sarwar, Z. (2020). Determinants of non-performing loans in the banking sector in developing state. Asian Journal of Accounting Research, 5(1), 135–145. https://doi.org/10.1108/AJAR-10-2019-0080
Kuswahariani, W., Siregar, H., & Syarifuddin, F. (2020). Analisis Non Performing Financing (Npf) Secara Umum Dan Segmen Mikro Pada Tiga Bank Syariah Nasional Di Indonesia. Jurnal Aplikasi Bisnis Dan Manajemen, 6(1). https://doi.org/10.17358/jabm.6.1.26
Ledhem, M. A., & Mekidiche, M. (2020). Economic growth and financial performance of Islamic banks: a CAMELS approach. Islamic Economic Studies, 28(1), 47–62. https://doi.org/10.1108/IES-05-2020-0016
Masykuroh, N., Suganda, A. D., Sani, A. A., Fasa, M. I., & Rahmanto, D. N. A. (2020). Cycle Business on Islamic Bank: Var Approach. Talent Development & Excellence, 12(3s), 1165–1175.
Mokhtar, H. S. A., Abdullah, N., & Al-Habshi, S. M. (2006). Efficiency of Islamic Banking in Malaysia: A Stochastic Frontier Approach. Journal of Economic Cooperation, 27(2), 37–70.
Mustafa, O. A. O. (2019). Assessment of the Financial Performance of Islamic Commercial Banks in Sudan under Credit Risk and Inflation Pressures (1995-2017). Journal of Islamic Banking and Finance, 7(1). https://doi.org/10.15640/jibf.v7n1a2
Nelmida, N. (2020). Potensi Financial Distress Bank Umum Syariah di Indonesia. Jurnal Ekonomi, Manajemen Dan Perbankan (Journal of Economics, Management and Banking), 5(3), 156. https://doi.org/10.35384/jemp.v5i3.157
Popita, M. S. A. (2013). Analisis Penyebab Terjadinya Non Performing Financing pada Bank Umum Syariah di Indonesia. Accounting Analysis Journal, 2(4).
Purnamasari, A. E., & Musdholifah, M. (2018). Analisis Faktor Eksternal dan Internal Bank terhadap Risiko Pembiayaan Bank Umum Syariah di Indonesia Periode 2012-2015. BISMA (Bisnis Dan Manajemen), 9(1), 13–25. https://doi.org/10.26740/bisma.v9n1.p13-25
Purwanto. (2021). Non Performing Financing and Efficiency of Islamic Banks in Indonesia. Journal of Business Studies and Mangement Review, 4(2), 159–168. https://doi.org/10.22437/jbsmr.v4i2.13289
Rodoni, A., & Yaman, B. (2018). Asymmetric Information and Non-Performing Financing: Study in The Indonesian Islamic Banking Industry. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 10(2). https://doi.org/10.15408/aiq.v10i2.7392
Rustika, F. D. (2016). Pengruh Inflasi, Suku Bunga Acuan (BI Rate), Nilai Tukar Rupiah dan Gross Domestic Product (GDP) terhadap Non Performing Financing Perbankan Syariah [Universitas Negeri Yogyakarta]. https://eprints.uny.ac.id/41600/1/FridaDwiRustika_12808141073.pdf
Said, S. (2015). Sharia Banking Performance in Makassar. Al-Ulum, 15(1), 21. https://doi.org/10.30603/au.v15i1.215
Sebtianita, E. (2015). Analisis kinerja bank umum syariah dengan menggunakan pendekatan islamicity performance index: Studi pada bank umum syariah periode tahun 2009-2013 [Universitas Islam Negeri Maulana Malik Ibrahim]. http://etheses.uin-malang.ac.id/1107/1/11510022 Pendahuluan.pdf
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach. John Wiley & Sons Ltd.
Setiawan, C., & Sherwin, S. M. (2017). Banks Efficiency and the Determinants of Non-Performing Financing of Full-Fledged Islamic Banks in Indonesia. Proceedings of 12th Asia-Pacific Business Research Conference.
Setiawan, I. (2020). Analisis Peran Perbankan terhadap Pertumbuhan Ekonomi di Indonesia: Bank Syariah Versus Bank Konvensional. Jurnal Akuntansi Ekonomi Dan Manajemen Bisnis, 8(1), 52–60. https://doi.org/10.30871/jaemb.v8i1.1649
Setiawan, S., Wulansari, P., & Dewi, R. P. K. (2020). Pengukuran Tingkat Kinerja Keuangan dan Kinerja Non Keuangan pada Bank Syariah di Lima Negara Asia (Studi Kasus pada Bank Syariah dengan Aset Tertinggi). Dinamika Akuntansi Keuangan Dan Perbankan, 9(1), 69–78.
Shawtari, F. A., Ariff, M., & Abdul Razak, S. H. (2019). Efficiency and bank margins: a comparative analysis of Islamic and conventional banks in Yemen. Journal of Islamic Accounting and Business Research, 10(1), 50–72. https://doi.org/10.1108/JIABR-07-2015-0033
Sitompul, S., & Nasution, S. K. (2019). The Effect of Car, BOPO, NPF, and FDR on Profitability of Sharia Commercial Banks in Indonesia. Budapest International Research and Critics Institute (BIRCI-Journal) : Humanities and Social Sciences, 2(3), 234–238. https://doi.org/10.33258/birci.v2i3.412
Sudirman, S., Trimulato, T., Sadapotto, A., & Yulianti, Y. (2022). The Influence of Internal and External Factors As an Explanation of Changes in Non-Performing Financing At Bank Bni Syariah. Tasharruf: Journal Economics and Business of Islam, 7(2), 119. https://doi.org/10.30984/tjebi.v7i2.2084
Sugiyono. (2017). Metode Penelitian: Kuantatif, Kalitatif dan R&D. Alfabeta.
Suzuki, Y., & Sastrosuwito, S. (2011). Efficiency and Productivity Change of the Indonesian Commercial Banks. 2011 International Conference on Economics, Trade and Development.
Taswan. (2010). Akuntansi Perbankan (Edisi ke-3). UPP STIM YKPN.
Tripuspitorini, F. A., & Setiawan, S. (2020). Pengaruh Faktor Makroekonomi Terhadap Pertumbuhan Dana Pihak Ketiga Pada Bank Umum Syariah di Indonesia. Jurnal Riset Akuntansi Dan Keuangan, 8(1).
Utami, W., & Pernamasari, R. (2019). The Performance of Spending Budget: Governance and Human Resource Competence Perspectives (A Study on Ministries and State Institutions in Indonesia). International Journal of Innovation, Creativity and Change, 5(6), 616–633.
Wasiaturrahma, Sukmana, R., Ajija, S. R., Salama, S. C. U., & Hudaifah, A. (2020). Financial performance of rural banks in Indonesia: A two-stage DEA approach. Heliyon, 6(7), e04390. https://doi.org/10.1016/j.heliyon.2020.e04390
Widarjono, A. (2009). Ekonometrika: Pengantar dan Aplikasinya (Edisi ke-3). Ekonisia.
Yusnita, R. R. (2019). Analisis Kinerja Bank Umum Syariah Dengan Menggunakan Pendekatan Islamicity Performance Index Periode Tahun 2012-2016. Jurnal Tabarru’: Islamic Banking and Finance, 2(1), 12–25. https://doi.org/10.25299/jtb.2019.vol2(1).3443
Yusuf, D., Hamdani, & Kholik, K. (2019). The Effect of Buy and Sell Financing (Murabahah), Profit Share Financing (Mudarabah), Equity Capital Financing (Musyarakah) and Non-Performing Financing Ratio on Profitability Level of Sharia Commercial Banks in North Sumatera. Britain International of Humanities and Social Sciences (BIoHS) Journal, 1(1), 81–88. https://doi.org/10.33258/biarjohs.v1i1.18
Yusuf, M., & Ichsan, R. N. (2021). Analysis of Banking Performance in The Aftermath of The Merger of Bank Syariah Indonesia in Covid 19. International Journal of Science, Technology & Management, 2(2), 472–478. https://doi.org/10.46729/ijstm.v2i2.182
DOI: https://doi.org/10.18196/jbti.v15i2.22215
Refbacks
- There are currently no refbacks.
This work is licensed under Attribution-NonCommercial-NoDerivatives 4.0 International