ANALYSIS OF EXTERNAL AND INTERNAL FACTORS ON NON-PERFORMING FINANCING AT BANK SYARIAH ABC

Abstract

This study aims to identify external and internal factors that affect non-performing financing at ABC Sharia Bank and find out ABC's strategy in dealing with non-performing financing. The method used in this study is descriptive with a qualitative approach. Secondary data collection is obtained from documented sources in the company, namely financial statements, and primary data is obtained through survey research. The population in this study is in the placement work areas of Jakarta, Bogor, Depok, Tangerang and Bekasi and 126 parties involved in the process of providing and monitoring financing and from this number 116 samples were obtained. The results of the study show that internal factors have a significant influence on determining financing strategies to reduce NPF. Weaknesses in bank management such as Human Resources (HR) Weaknesses of banks such as Bank Officers are involved in personal interests and provide financing to businesses whose cycles are declining and weaknesses in financing documents related to the fulfillment of documents that do not comply with the terms and/or requirements lead to poor financing strategies that increase the risk of non-performing financing. External factors, especially customer factors, have a significant impact on the provision of financing strategies. There are weaknesses in customer capabilities caused by problematic customer businesses so that they are unable to meet financing obligations due to internal customer errors, disease outbreaks, pandemic impacts, difficulty competing in business competition, and business bankruptcy. Financing strategies have a significant effect on non-performing financing, weaknesses in the analysis of financing strategies by banks that are not based on accurate data/low data quality/not well verified have an effect on the increase in the risk of non-performing financing.