The Comparation of Credit Risk and Likuidity Risk Between Commercial Banking Sharia (CBS) and Sharia Bussines Unit (SBU) in Sharia Banking Portofolio Edi Junaedi
School of Post Graduate UPI
Jl. DR. Setiabudi No 229, Bandung, Indonesia
Abstract
The development of Sharia Banks industry in Indonesia is growing rapidly and becoming one part of the financial market competition. In Indonesia, sharia banks are divided into three namely, Sharia Commercial Bank (BUS), Sharia Business Unit (UUS) and Sharia Rural Bank (BPRS). Until the period of December 2017 there were 13 BUS, 21 UUS and 92 Shariah BPRs that have been operating with a total of 714 Headquarters and Branches and 1,315 Sub Branch Offices throughout Indonesia. This study aims to identify and compare how the risk profile of credit and liquidity risk between Sharia Commercial Bank and Sharia Business Unit. NPF (Non Performing Financing) is an indicator of credit risk profile and FDR (Financing to Debt Ratio) is used as an indicator of liquidity risk measurement. This study is a descriptive study with secondary data derived from the annual financial statements of OJK period 2014-2017 with a sample of 12 banks of Sharia and 21 units of Sharia Business Unit. The result shows that NPF in sharia bank is higher than NPF of Sharia Business Unit. The average NPF of Commercial Banking Sharia was 4.74% and FDR was 85.08% while in Sharia Business Unit the average of NPF was 2.80% and FDR was 102.5%. Sharia business unit is considered more able to control the credit risk given while Sharia Commercial Bank is considered more able to control liquidity risk. Therefore Comercial Bank Sharia need to mitigate to minimize credit risk and Sharia Business Unit needs to mitigate to minimize liquidity risk. There needs to be a comparative study on both types of sharia banking to share the risk mitigation way.
Keywords: Commercial Sharia Banking, Sharia Banking Unit, NPF (Non Performing Loan), FDR (Financing to Debt Ratio)
