ABSTRACT
Non-Performing Financing is the main problem faced by Syariah banks in running their operations. This study examines the specific factors of Islamic banks that affect the Non-Performing Financing of Islamic banks in Indonesia in the period 2008–2016. The analysis technique used in this study was multiple regression (OLS) to measure the effect of the variables Efficiency, Financing, Capital Adequacy Ratio and Size of Bank against Non-Performing Financing (NPF). The results showed that the Financing (FIN) and Capital Adequacy Ratio (CAR) variables significantly influence the Non-Performing Financing of Islamic Banks, while the Efficiency variable obtained from the calculation of DEA (Data Envelopment Analysis) and SIZE Islamic banks has no significant effect on Non-Performing Financing (NPF). Financing that positively affects NPF of Islamic banks shows that the increase in financing variables leads to an increase in Islamic bank NPF, but, on the other hand, the CAR variable, which has a negative influence on NPF, shows that the financing risk can still be managed well by the Islamic bank and Islamic bank management can still sufficiently capital minimum banking.
