The Effect of Inflation, BI Rate, Exchange Rate, CAR, FDR, BOPO on Non-Performing Financing at Bank KB Bukopin Syariah and Bank Jabar Banten Syariah Period 2015-2024

Authors

  • Amalia Rofiana Rohmah Universitas Islam Negeri Syarif Hidayatullah Jakarta
  • M. Fadlillah Fauzulkhaq Universitas Islam Negeri Syarif Hidayatullah Jakarta

DOI:

https://doi.org/10.30651/jms.v11i2.30756

Abstract

Non-Performing Financing (NPF) that fluctuates above the healthy threshold may cause banking inefficiencies and increase the risk of problematic financing. This condition is influenced by macroeconomic factors and banks' internal performance. This study analyzes the effect of inflation, interest rates (BI-Rate), Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), and Operational Expense to Operational Income Ratio (BOPO) on NPF at Bank KB Bukopin Syariah and Bank Jabar Banten Syariah for 2015–2024. Data were obtained from quarterly financial reports and official publications from Bank Indonesia and the Financial Services Authority. The analysis uses the Panel Vector Error Correction Model (PVECM) to examine short- and long-term relationships, supported by Impulse Response Function and Variance Decomposition. The results show that, in the short term, inflation, BI-Rate, CAR, FDR, and BOPO have a negative and significant effect on NPF, while exchange rates are not significant. In the long term, inflation, exchange rates, and CAR have a positive and significant effect on NPF, whereas BI-Rate, FDR, and BOPO are not significant. Variance Decomposition indicates that BOPO is the most dominant factor influencing NPF fluctuations.

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Published

2026-05-06

How to Cite

Rohmah, A. R., & M. Fadlillah Fauzulkhaq. (2026). The Effect of Inflation, BI Rate, Exchange Rate, CAR, FDR, BOPO on Non-Performing Financing at Bank KB Bukopin Syariah and Bank Jabar Banten Syariah Period 2015-2024. Jurnal Masharif Al-Syariah: Jurnal Ekonomi Dan Perbankan Syariah, 11(1). https://doi.org/10.30651/jms.v11i2.30756

Issue

Vol. 11 No. 1 (2026)

Section

Artikel

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