Determinan Non-Performing Financing Pada Bank Perkreditan Rakyat Syariah Di Indonesia Tahun 2015-2020

The one of indicator to assess the health of islamic banks is to look at the level of Non-Performing Fianancing (NPF). According to OJK, a bank can be said being healthy if the NPF level isless than 5%. This study aims to estimate the effect of inflation, BI Rate and exchange rate on NPF at BPR Syariah in Indonesia from April 2015 to December 2020 using the Partial Adjustment Model (PAM). The results of this study indicate that inflation has a positive effect on the NPF, while the BI Rate and exchange rate have no effect on the NPF. The BPR Syariah needs to improve management controls that are tighter in order to reduce the the number of NPF that occur in BPR Syariah. Then the BPR Syariah needs to apply the precautionary principle in determining the profit sharing ratio, financing portion, and income targer in order to be able to compete with conventional banks to increase the acquisition of third party funds collected by BPR Syariah