Abstract

This study aims to analyse the effect of financing in the economic sector on Non-Performing Financing (NPF) in the Islamic Rural Bank (BPRS) in Indonesia in the period January 2012 - August 2018. Using quantitative methods, the data used in this study originated from Indonesia's Financial Services Authority's (OJK) official website. The research was tested using multiple linear regression analysis with a significance level of 0.05. Partially, the results of the study show that the financing variables in the economic sector of agriculture, forestry, and agricultural facilities; trade, restaurants and hotels have a significant negative effect on NPF. Meanwhile, the financing of the economic sector on the business services does not affect NPF. Simultaneously, all of the independent variables have a significant effect on NPF.

Original languageEnglish
Pages (from-to)277-287
Number of pages11
JournalInternational Journal of Innovation, Creativity and Change
Volume10
Issue number12
Publication statusPublished - 2020

Keywords

  • BPRS
  • Financing economic sector
  • NPF

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