Default Risk and Its Determinant Factors of Islamic Bank in Indonesia: An Empirical Study for the Period of 2014-2018

Nadia Meirani; Kurniawan Saefullah; Erie Febrian

doi:10.32698/ICRED.0458

Default Risk and Its Determinant Factors of Islamic Bank in Indonesia: An Empirical Study for the Period of 2014-2018

Nadia Meirani^(1*), Kurniawan Saefullah⁽²⁾, Erie Febrian⁽³⁾

(1) Master in Management Science, Faculty of Economics & Business, Universitas Padjadjaran, Bandung, Indonesia
(2) Master in Management Science, Faculty of Economics & Business, Universitas Padjadjaran, Bandung, Indonesia
(3) Master in Management Science, Faculty of Economics & Business, Universitas Padjadjaran, Bandung, Indonesia
(*) Corresponding Author

Abstract

This paper identify the influences of capital adequacy ratio, financing portfolio, size and financing portfolio to default risk of Islamic Bank in Indonesia. Using panel data of 6 Islamic Banks in Indonesia for the sample period of 2014-2018, this paper concluded that except capital adequacy ratio, other determinant factors are found statistically significant in influencing default risk of Islamic Banks in Indonesia.