The Influence of Financing to Deposit Ratio, Mudharabah Financing, and Operating Efficiency Ratio on Non-Performing Financing

The high Financing to Deposit Ratio (FDR), Mudharabah Financing, and Operating Efficiency Ratio (OER) values have the potential to cause non-performing (NPF), substandard, doubtful, and bad debts in Sharia Rural Banks (BPRS) in Indonesia in the 2019–2022 period. This research intends to analyze the influence of FDR, Mudharabah Financing, and OER on NPF. The type of research is quantitative research with analytical descriptive research methods. The data used is panel data from BPRS for 2019–2022. The research employed non-probability sampling approaches. The data analysis used in this research is quantitative data analysis. This research showed that partially, FDR and Mudharabah Financing do not affect Non-Performing Financing, while OER does. Simultaneously, FDR, Mudharabah Financing, and OER affect NPF. The coefficient of determination with an adjusted R-squared value of 0.073 indicates that the contribution of FDR, Mudharabah Financing, and OER to NPF is 7.3%. Meanwhile, the remaining 92.7% was affected by other variables outside the research.