ABSTRACT
The purpose of this study is to examine the Bank Specific Variable (BSV) factors which affect credit risk in Islamic banking. The research method is explanatory research and uses secondary data derived from Islamic bank financial statements. The results of this study show the existence of a significant negative effect on the Capital Adequacy Ratio (CAR) and Financing Quality (FQL) to credit risk. There is a significant positive effect on Financing Expansion (FEXP) on credit risk and no significant effect on Return on Assets (ROA) on credit risk in Islamic banking. The results of this study contrast with previous studies. The cause is the difference of the object under study, the year of data collection and the amount of data used. The impact of this study is to provide information for the prevention of credit risk that will impact on the sustainability of the Islamic banking business.
