ANALISIS NON-PERFORMING FINANCING (NPF) SEBAGAI INDIKATOR RISIKO KREDIT PADA PT BPR SYARIAH MERU NUSANTARA MANDIRI

Abstract

PT BPR Sharia Meru Nusantara Mandiri is an Islamic bank that focuses on people's financing and operates in Magelang City by applying sharia principles in every activity. As a financial institution, BPRS has a strategic role in channeling financing to the community, but is also faced with challenges in managing credit risk. One of the main indicators in assessing the quality of financing is Non-Performing Financing (NPF), which shows the level of risk of non-performing financing in Islamic banks. This study aims to examine the role of NPF as an indicator of credit risk at PT BPR Sharia Meru Nusantara Mandiri with a quantitative approach based on secondary data analysis of the bank's financial statements. The results show that an increase in NPF is positively correlated with increased risk in financing, which may adversely affect the financial stability of the bank. Therefore, good NPF management is necessary to maintain the financial condition of BPRS to remain stable and sustainable in the long term. Effective NPF control can also increase customer confidence and encourage the growth of the Islamic banking industry at large.