Peran risiko kredit (Non-Performing Financing) dalam menentukan profitabilitas bank syariah di Indonesia

Abstract

This study aims to examine the role of financing risk, measured by Non-Performing Financing (NPF), in influencing the profitability of Islamic banks in Indonesia. Financing risk is a crucial aspect of Islamic banking operations as it is directly related to the quality of fund distribution to customers. This research employs a qualitative approach using a literature review method by analyzing relevant previous studies on financing risk and financial performance of Islamic banks. The findings indicate that an increase in NPF is generally associated with a decline in profitability, as higher non-performing financing can reduce income and increase provisioning costs. Therefore, effective management of financing risk is essential to maintain the stability and sustainability of Islamic banks’ performance. This study is expected to provide a more comprehensive understanding and serve as a reference for managing financing risk in the Islamic banking industry.