How Islamic Corporate Governance Mitigates Financing Risk in Indonesian Islamic Banking?

Rosidi Rosidi, Rizky Aditya Nugraha, Intan Lifinda Ayuning Putri

Abstract


Islamic banking in Indonesia exhibits strong growth but continues to grapple with high financing risk, as evidenced by Non-Performing Financing (NPF) levels. While previous research suggests a link between Sharia Supervisory Boards (DPS), Financing to Deposit Ratios (FDR), and NPF, findings remain inconsistent. This study investigates the mediating role of Islamic Corporate Governance (ICG) in the relationship between DPS, FDR, and NPF within the context of Indonesian Islamic commercial banks. Panel data from 12 Indonesian Islamic commercial banks between 2016 and 2021 were analyzed using panel multiple regression. The Sobel test was employed to assess the mediating effect of ICG. The study reveals a positive relationship between DPS and NPF, while FDR showed no significant effect on NPF. Importantly, ICG had a negative impact on NPF and partially mediated the relationship between DPS and NPF. These findings highlight the critical importance of robust ICG practices in mitigating financing risk within Islamic banking. The study recommends further research into the influence of macroeconomic factors on NPF and exploring the effectiveness of DPS functions in enhancing ICG practices.

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ABSTRAK – Bagaimana Tata Kelola Syariah Memitigasi Risiko Pembiayaan pada Perbankan Syariah di Indonesia? Perbankan syariah di Indonesia mengalami pertumbuhan yang pesat namun terus menghadapi risiko pembiayaan yang tinggi, seperti yang terlihat dari tingkat pembiayaan bermasalah (NPF). Meskipun penelitian sebelumnya menunjukkan adanya hubungan antara tingkat NPF dengan Dewan Pengawas Syariah (DPS), Rasio Pembiayaan terhadap Simpanan (FDR), dan Tata Kelola Perusahaan Syariah (ICG), namun hasilnya belum konsisten. Penelitian ini mengkaji peran mediasi ICG dalam hubungan antara DPS, FDR, dan NPF dalam konteks bank umum syariah di Indonesia. Penelitian ini menggunakan data panel dari 12 bank umum syariah di Indonesia selama periode 2016-2021. Metode analisis yang digunakan adalah regresi panel berganda dengan uji Sobel untuk menguji efek mediasi. Hasil penelitian menunjukkan bahwa DPS berpengaruh positif terhadap risiko pembiayaan syariah sedangkan FDR tidak berpengaruh terhadap risiko pembiayaan syariah. Kemudian ICG berpengaruh negatif terhadap risiko pembiayaan syariah. Selain itu, hasil uji Sobel menunjukkan bahwa ICG secara parsial memediasi pengaruh DPS dan FDR terhadap risiko pembiayaan syariah. Temuan ini menggarisbawahi pentinya praktik ICG yang baik dalam mengurangi risiko pembiayaan dalam perbankan syariah. Kajian ini merekomendasikan agar penelitian lebih lanjut fokus pada pengaruh faktor makroekonomi terhadap NPF dan menganalisis efektivitas fungsi DPS dalam meningkatkan praktik ICG.


Keywords


Islamic Corporate Governance (ICG), Sharia Supervisory Board (DPS), Financing to Deposit Ratio (FDR), Non-Performing Financing (NPF), Islamic Banking.

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DOI: http://dx.doi.org/10.22373/share.v13i2.21469

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