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.
