THE EFFECT OF LOAN LOSS PROVISION, FINANCING GROWTH, OPERATIONAL COSTS AND RETURN ON ASSETS ON NON PERFORMING FINANCING IN THE SHARIA BANKING OF INDONESIA

Hasepti Hari Harizanto
2020 Economica  
Non Performing Financing (NPF) is a ratio used to measure the level of financing risk in Islamic Banks. The purpose of this study was conducted to determine the effect of internal variables / specific variables such as LLP, FG, BOPO, and ROA at Bank Indonesia during the study period (2011-2016). for the method used in this study using panel data regression analysis, with several choices of the chow test model, the hausman test, lagrange multiplier test, and hypothesis testing using the T-test
more » ... test the regression coefficients partially and the F-test to test the joint effect at the level significant. 5%. using purposive sampling technique. while for this type of research is quantitative, for the population in this study that is Islamic banking throughout Indonesia and for the number of samples in this study were 12 Islamic banks using purposive sampling techniques. and for the results obtained in this study are the Loan Loss Provision (LLP), Funding Growth (FG), Operational Costs (BOPO), have a positive and significant effect on NPF. While Return on Assets (ROA) has a positive and not significant effect on NPF. But together the independent variables have an effect on the NPF of Islamic Banks in Indonesia. Jel Classification: M4, M41, M42
doi:10.22202/economica.2020.v8.i2.3678 fatcat:6pr3nmihinhhzct2ywv5j3vebm