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|Title:||Non-Performing Finance in Sharia Financial Institutions in Indonesia: A Case Study of BPRS Adeco (Aceh Development Corporation|
|Keywords:||Islamic Rural banking;Non Performing Finance;Finance Risk management|
|Publisher:||UIN Syarif Hidayatullah Jakarta|
|Abstract:||High level of Non-Performing Finance (NPF) has become one of the risks faced by intermediary financial institutions, including Islamic banks. Indonesia’s Financial Authority found that NPF ratio of Islamic banks is relatively higher (4,12%) that one of the conventional banks (OJK, 2017). Literature indicates the influence of the bank’s internal and external factors on high NPF. This study aims to analyze the factors that influence the high level of NPF and its settlement and strategies to reduce the level of NPF in Sharia Rural Banking (BPRS/Bank Perkreditan Rakyat Syariah). Taking BPRS Adeco (Aceh Development Corporate) located in Langsa City District, Aceh, as a case study, this research takes a qualitative approach. Through a survey to 26 BPRS Adeco employees and semi-structured interviews with four employees, this study found three factors leading to an increase in the NPF ratio, namely weak bank’s financing risk management, changing economic conditions and regulations,|
|Appears in Collections:||Artikel|
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