What is the Best Risk Management in Sharia Banking Financing? Lina Nugraha Rani, Eko Fajar Cahyono, Sylva Alif Rusmita
Islamic Economics Department Faculty of Economics and Business Universitas Airlangga
Abstract
The objective of the research is to describe the implementation of risk management of sharia bank financing. Financing is one of the two primary functions of Sharia bank operations apart from the deposit function. Financing is one of the highest types of assets in sharia banking. The financing has a risk in the form of problem financing, i.e. the bank does not receive any repayment of financing installment from the financing customer. The risk of financing can have a significant impact on banking operations, one of which is the lack of liquidity and a decrease in profit on financing assets. Several studies have discussed the risks of conventional banking financing in this study trying to provide evidence of risk management of Islamic banking financing. The method used in this research is literature study that is by analyzing some research on risk management of Sharia Bank financing internationally, especially in Islamic countries like Malaysia, Indonesia, Saudi Arabia, Iran, and others. This research uses the qualitative approach. Period 2008 - 2018.
