Diversifikasi pembiayaan dan pengaruh Covid-19 terhadap Non Performing Financing (NPF) di Provinsi Jawa Barat Indonesia

Purpose – This study aims to analyze the effect of financing diversification using several control variables, namely Z-score, assets, CAR, FDR, BOPO, and to analyze the impact of Covid-19 variables on Non-Performing Financing (NPF) of Islamic Rural Banks (BPRS) in Indonesia.Methods – The data for BPRS are collected from the BPRS located in West Java Province. The static panel data regression method is used for quarterly data from 2013 to 2022.Findings – The results of the study indicate that the variables of financing diversification, assets, CAR, and Covid-19 have a significant negative impact on Non-Performing Financing (NPF). The BOPO variable has a significant positive impact on NPF. The Z-score and FDR variables do not have a significant impact on NPF.Implication – The findings suggest that BPRS, especially those in West Java Province, should reduce high-concentration financing by optimizing Profit and Loss Sharing (PLS) and non-PLS contracts.Originality – This research introduces the use of financing diversification with the Herfindahl-Hirschman Index (HHI) method, which has been less explored by other researchers. AbstrakTujuan – Penelitian ini bertujuan untuk menganalisis pengaruh diversifikasi pembiayaan dengan menggunakan beberapa variabel kontrol yaitu Z-score, asset, CAR, FDR, BOPO, serta menganalisis terkait pengaruh variabel Covid 19 terhadap Non Performing Financing (NPF) BPRS di Indonesia Metode – Data BPRS menggunakan jumlah BPRS yang berada di Provinsi Jawa Barat. Metode regresi data panel statis dengan data kuartal tahun 2013 sampai 2022.Temuan – Hasil dari penelitian adalah variabel diversifikasi pembiayaan, asset, CAR, dan Covid 19 berpengaruh negatif signifikan terhadap Non Performing Financing (NPF). Variabel BOPO berpengaruh positif signifikan terhadap NPF. Variabel Z-score dan FDR tidak berpengaruh terhadap NPF. Implikasi – Hasil penelitian menunjukkan bahwa BPRS terutama BPRS di Provinsi Jawa Barat harus mengurangi pembiayaan terkonsentrasi tinggi dengan mengoptimalkan kontrak PLS dan non PLS Orisinalitas – Penelitian ini menggunakan diversifikasi pembiayaan dengan metode Herfindahl-Hirschman (HHI) yang belum banyak digunakan oleh peneliti lain.