Abstract
According to data from Bank Indonesia the level of Non Performing Finance (NPF), Islamic Commercial Banks and Sharia Business Units as of March 2009 amounted to 5.14%, this condition has increased compared to the number of NPFs which were around 4% at the end of 2008. The presence of Law Number 21 of year 2008 concerning Islamic Banking regulates the resolution of troubled financing disputes that may arise in Islamic banking. This study aims to determine the factors that cause the occurrence of problematic financing in Islamic banks and efforts to solve financing problem based on Article 40 Jo Article 55 of Law Number 21 of year 2008 concerning Islamic Banking. The results of research and statute approach analysis showed that the factors causing the occurrence of problematic financing in Islamic banks include internal factors originating from banks or Islamic banking officials, internal factors originating from customers and external factors of banks and customers. Whereas efforts to resolve problem financing based on Article 40 Number 21 of 2008, namely by means of Islamic banks can be attained by part or all of the collateral, either through auctions or external sales. According to Article 55 of Law Number 21 of year 2008, the settlement of troubled financing can be done by means of litigation, namely through a court within the Religious Courts, as long as the resolution of the dispute is not regulated in the contents of the financing contract.
Original language | English |
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Pages (from-to) | 1335-1340 |
Number of pages | 6 |
Journal | Journal of Advanced Research in Dynamical and Control Systems |
Volume | 11 |
Issue number | 5 Special Issue |
Publication status | Published - 2019 |
Keywords
- Causal factors
- Customer
- Financial problems
- Litigation
- Sharia banking