Article Sidebar

Download
PDF
Statistic
Read Counter : 1257 Download : 1153

Downloads

Download data is not yet available.

Main Article Content

Abstract

Doubtful finance showing a bad performance of a company, but this can be avoided if the banks use the right strategy to prevent such financial condition. This study aims to indicate the determinants of doubtful finance in the Indonesian Islamic banking sector from 2011 to 2018. We employed panel data regression to meet our objectives. Our results depict that banks’ profitability and finance to deposit ratio have a significant positive impact on Non-Performing Finance. On the other hand, Gross Domestic Product has a significant positive effect on doubtful finance. This study provides an alluded picture of Indonesian Islamic banking sectors, particularly Non-Performing Finance (NPF). Moreover, it enables policymakers to deliberate on the macroeconomic determinants of NPFs (i.e. GDP). Furthermore, this study will enhance the Islamic bank's performance literature.

Article Details

License

Copyright (c) 2020 Authors

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Author Biography

Anggia Zainur Rahmah, Faculty of Economics and Bussiness, Universitas Airlangga, Surabaya, Indonesia

Magister Islamic Economics Sains
How to Cite
Rahmah, A. Z., & Armina, S. H. (2020). Macro and micro determinants of the non-performing finance: The case of Indonesian Islamic bank. Jurnal Ekonomi & Keuangan Islam, 6(1), 34–41. https://doi.org/10.20885/JEKI.vol6.iss1.art4
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
Crossref
Scopus
Google Scholar
Europe PMC

References

  1. Akbar, D. A. (2016). Inflasi, Gross Domestic Product (GDP), Capital Adequacy Ratio (CAR), dan Finance to Deposit Ratio (FDR) Terhadap Non Performing Financing (NPF) pada Bank Umum Syariah di Indonesia. I-Economic, 2(2), 19–37. Retrieved from http://jurnal.radenfatah.ac.id/index.php/ieconomics/article/view/1021/855
  2. Alandejani, M., & Asutay, M. (2017). Nonperforming loans in the GCC banking sectors: Does the Islamic finance matter? Research in International Business and Finance, 42(June 2016), 832–854. https://doi.org/10.1016/j.ribaf.2017.07.020
  3. Arif, A., & Nauman Anees, A. (2012). Liquidity risk and performance of banking system. Journal of Financial Regulation and Compliance, 20(2), 182–195. https://doi.org/10.1108/13581981211218342
  4. Astrini, K. S., Suwendra, I. W., & Suwarna, I. K. (2018). Pengaruh CAR, LDR, dan Bank Size terhadap NPL pada Lembaga Perbankan yang Terdaftar di Bursa Efek Indonesia. Bisma: Jurnal Manajemen, 4(1), 34–41. Retrieved from https://ejournal.undiksha.ac.id/index.php/BISMA-JM/article/view/21977/13607
  5. Berger, A. N., & DeYoung, R. (1997). Problem Loans and Cost Efficiency in Commercial Banks. Finance and Economics Discussion Series, 1997(08), 1–29. https://doi.org/10.17016/feds.1997.08
  6. Chaibi, H., & Ftiti, Z. (2015). Credit risk determinants: Evidence from a cross-country study. Research in International Business and Finance, 33, 1–16. https://doi.org/10.1016/j.ribaf.2014.06.001
  7. Chang, Y. T. (2006). Role of Non-Performing Loans (NPLs) and Capital Adequacy in Banking Structure and Competition (No. 06–15). Norwich.
  8. Dimitrios, A., Helen, L., & Mike, T. (2016). Determinants of non-performing loans: Evidence from Euro-area countries. Finance Research Letters, 18, 116–119. https://doi.org/10.1016/j.frl.2016.04.008
  9. Diyanti, A., & Widyarti, E. T. (2012). Analisis Pengaruh Faktor Internal dan Eksternal Terhadap Terjadinya Non-Performing Loan (Studi Kasus pada Bank Umum Konvensional yang Menyediakan Layanan Kredit Pemilikan Rumah Periode 2008-2011). Diponegoro Journal of Management, 1(2), 290–299.
  10. Ekananda, M. (2017). Macroeconomic Condition and Banking Industry Performance in Indonesia. Buletin Ekonomi Moneter Dan Perbankan, 20(1), 71–98. https://doi.org/https://doi.org/10.21098/bemp.v20i1.725
  11. Ghosh, M., Ghoshray, A., & Malki, I. (2013). Regional divergence and club convergence in India. Economic Modelling, 30(1). https://doi.org/10.1016/j.econmod.2012.10.008
  12. Gujarati, D., & Porter, D. C. (2009). Basic Econometrics (5th Editio). New York: McGraw-Hill Irwin.
  13. Havidz, S. A. H., & Setiawan, C. (2015). Bank Efficiency and Non-Performing Financing (NPF) in The Indonesian Islamic Banks. Asian Journal of Economic Modelling, 3(3), 61–79. https://doi.org/10.18488/journal.8/2015.3.3/8.3.61.79
  14. Indah, D., & Arief, P. (2016). Pengaruh Non Performing Loan (NPL) dan Capital Adequacy Ratio (CAR) Terhadap Profitabilitas. Management Analysis Journal, 5(2), 110–115.
  15. Kjosevski, J., & Petkovski, M. (2017). Non-performing loans in Baltic States: Determinants and macroeconomic effects. Baltic Journal of Economics, 17(1), 25–44. https://doi.org/10.1080/1406099X.2016.1246234
  16. Lidyah, R. (2016). Dampak Inflasi , BI RATE , Capital Adequacy Ratio (CAR), Biaya Operasional Pendapatan Operasional (BOPO) Terhadap Non Performing Financing (NPF) pada Bank Umum Syariah di Indonesia. I-Finance, 2(1), 1–19. Retrieved from http://jurnal.radenfatah.ac.id/index.php/I-Finance/article/view/1006/840
  17. Misra, B., & Dhal, S. (2010). Pro-cyclical management of non-performing loan by the Indian Public Sector Bank. BIS Asian Research Paper. Retrieved from http://www.bis.org/repofficepubl/arpresearch201003.08.pdf
  18. Nugrohowati, R. N. I., & Bimo, S. (2019). Analisis pengaruh faktor internal bank dan eksternal terhadap Non-Performing Financing (NPF) pada Bank Perkreditan Rakyat Syariah di Indonesia. Jurnal Ekononomi & Keuangan Islam, 5(1), 42–49. https://doi.org/10.20885/JEKI.vol5.iss1.art6
  19. OJK. (2019). Statistik Perbankan Syariah. Retrieved from https://www.ojk.go.id/id/kanal/syariah/data-dan-statistik/statistik-perbankan-syariah/Documents/Pages/Statistik-Perbankan-Syariah-Januari-2019/SPSJanuari 2019.pdf
  20. Popita, M. S. A. (2013). Analisis Penyebab Terjadinya Non Performing Financing Pada Bank Umum Syariah Di Indonesia. Accounting Analysis Journal, 2(4), 404–412. https://doi.org/https://doi.org/10.15294/aaj.v2i4.2884
  21. Solihatun. (2014). Analisis Non Performing Financing (NPF) Bank Umum Syariah di Indonesia Tahun 2007–2012. Jurnal Ekonomi Pembangunan, 12(1), 57–68. https://doi.org/https://doi.org/10.22219/jep.v12i1.3655
  22. Sudarsono, H. (2009). Dampak Krisis Keuangan Global terhadap Perbankan di Indonesia: Perbandingan antara Bank Konvensional dan Bank Syariah. La_Riba Journal Ekonomi Islam, III(1), 12–23. https://doi.org/10.20885/lariba.vol3.iss1.art2
  23. Sudarsono, H. (2017). Analisis Pengaruh Kinerja Keuangan terhadap Profitabilitas Bank Syariah di Indonesia. Economica: Jurnal Ekonomi Islam, 8(2), 175–203. http://dx.doi.org/10.21580/economica.2017.8.2.1702