Empirical Analysis of Non Performing Financing In The Case of Indonesian Islamic Bank Lina Nugraha Rani, Fajar Eko Cahyono, Sylva Alif Rusmita
Islamic Economics Department, Faculty of Economics and Business, Universitas Airlangga
Abstract
Non Performing Financing is the main problem facing Syariah bank in running its operations. This study examines the specific factors of bank that affect the Non Performing Financing of Islamic banki in Indonesia period 2008-2016. The analysis technique used in this study is multiple regression (OLS) to measure the effect of variables Efficiency, Financing, Capital Adequacy Ratio and Bank Size to Non Performing Financing. The results showed that the variable Financing and Capital Adequacy Ratio is significantly affect Non Performing Financing Islamic bank. In relation to the analysis technique is panel regression, from the Haussman test results recommend that regression testing using REM (Random Effect Model).
Keywords: Islamic Bank; Non Performing Financing, Bank Spesific Factors
