THE DETERMINANTS OF CREDIT RISK OF ISLAMIC BANK IN INDONESIA PERIOD 2013Q3-2018Q2

Abstract

The purpose of this research was to determine the effect of Operational Efficiency Ratio (OER), Capital Adequacy Ratio (CAR), Return on Assets (ROA), Inflation, Gross Domestic Product (GDP), and BI Rate on credit risk (NPF) of Islamic Banks period 2013Q2-2018Q2. This research use secondary data of financial statement of Islamic Banks in quarterly bases. The sampling method that used in this research purposive sampling and data used multiple linear regression analysis. The result of this research shown that, simultaneously each internal and external factors have significant effect towards the NPF. Internal bank variable OER has positive and significant influence, while other internal and external variables have insignificant influence on NPF.