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

Available online at www.rajournals.in International Journal of Management and Economics Invention ISSN: 2395-7220 DOI: 10.47191/ijmei/v11i12.01 Volume: 11 Issue: 12 December 2025 International Open Access Impact Factor: 8.518 (SJIF) Page no. 4857-4861 4857 Ingrid Larasati Agustina, IJMEI Volume 11 Issue 12 December 2025 The Influence of Financing to Deposit Ratio, Mudharabah Financing, and Operating Efficiency Ratio on Non-Performing Financing Yola Sartika1, Ingrid Larasati Agustina2 1,2 Department of Accounting, Faculty of Economics and Business, Widyatama University, Indonesia ARTICLE INFO ABSTRACT Published Online: 01 December 2025 Corresponding Author: Ingrid Larasati Agustina 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. KEYWORDS: Financing to Deposit Ratio, Mudharabah Financing, Operating Efficiency Ratio, Non-Performing Financing I. INTRODUCTION According to Indonesian Law Number 10 of 1998, a bank is a business entity that collects funds from the public in the form of deposits and distributes them to the public in the form of credit or other forms to improve the public's standard of living (Fauziah, 2018). Based on Sharia Banking Law in Indonesia No. 21 of 2008, Islamic banking comprises three categories: Sharia Commercial Banks, Sharia Rural Banks, and Sharia Business Units. As of 2022, there were 167 Sharia Rural Banks (BPRS) (OJK, 2022). The large number of BPRS has led to high levels of financing disbursement. In some cases, high financing values with a Financing to Deposit Ratio (FDR) above 110% still lead to Non-Performing Financing (NPF). For example, in the case of the NPF ratio at PT BPRS Bakti Artha Sejahtera Sampang Perseroda, PT BPRS Bakti Artha Sejahtera, and PT BPRS Al Barokah, the collection process is challenging and requires a persuasive approach and good communication to achieve optimal results (Pratama, 2021). Mudharabah financing, conducted between a Sharia Rural Bank (BPRS) and Mudharabah savings and deposit holders, carries the risk of potential losses for the fund holders. However, this risk is relatively lower due to the strict supervision of the banking sector by the Central Bank. Furthermore, the banking sector is required to comply with various government and Central Bank regulations to protect fund holders and thus mitigate the risk of loss (Hadi, 2015). The BPRS receives operating income from funds disbursed to customers, calculated using the Operating Efficiency Ratio (OER). If this income declines, it can be assumed that one of the contributing factors is that the disbursed funds are generating more non-performing financing (Hafilah & Mahardika, 2019). II. LITERATURE REVIEW A. Non-Performing Financing (NPF) Non-Performing Financing (NPF) can be interpreted as a loan that is experiencing difficulties due to deliberate factors and/or due to external factors beyond the debtor's capabilities, which can be measured by its collectability. Non-Performing Financing is a situation where a customer is unable to pay part or all of their obligations to a Sharia financial institution as agreed in the payment agreement. The risk that occurs from borrowing or financing is delayed borrowing or the borrower's inability to pay obligations that have been imposed, often referred to as bad credit (Indah, 2022) NPF, or non-performing loans, are loans that experience difficulties in repayment or the possibility of customer failure to pay their obligations due to external factors beyond the debtor's capabilities (Rosidah, 2018). Non-Performing “The Influence of Financing to Deposit Ratio, Mudharabah Financing, and Operating Efficiency Ratio on NonPerforming Financing” 4858 Ingrid Larasati Agustina, IJMEI Volume 11 Issue 12 December 2025 Financing means financing that, in its implementation, has not reached the target desired by the bank, such as principal repayment or problematic profit sharing; financing that is included in the special attention, doubtful, and nonperforming categories, as well as the current category, which has the potential for arrears in repayment (Fauziah, 2018) According to Fauziah (2018), the amount of nonperforming financing can be categorized as follows: 1. Current with 0 months in arrears. 2. Under Special Attention (DPK) with arrears of 1-3 months. 3. Substandard (KL) with arrears of 4-6 months. 4. Doubtful with arrears of 7-9 months. 5. Losses with arrears of more than 9 months. B. Financing to Deposit Ratio (FDR) Financing to Deposit Ratio (FDR) is a comparison between financing provided by the bank and third-party funds that have been successfully collected by the bank. Financing to Deposit Ratio is a ratio used to measure the liquidity of a bank in repaying fund withdrawals made by depositors by relying on the financing provided as a source of liquidity, namely by dividing the amount of financing provided by the bank by Third Party Funds (DPK) (Indah, 2022) Bank Indonesia provides provisions to determine the health value of a bank. If the financing-to-deposit ratio at a bank is less than 110%, it can be said that the bank is channeling funds well, meaning that the bank's liquidity is considered healthy. However, if the financing-to-deposit ratio is 110% or more, it means that the bank's liquidity is considered unhealthy. The bank provides financing funds that exceed the funds collected. This can cause problems, namely if there are arrears in repayment of financing or if bad credit occurs (Ramadhani, 2018) C. Mudharabah Financing Mudharabah comes from the word "dhard", which means "hit" or "walk". In Islamic economics, hitting is the process of hitting someone's feet when running a business. So the definition of Mudharabah is a business agreement between Shahibul Maal and Mudharib where the capital owner (Shahibul Maal) provides all the necessary funds and the manager (Mudharib) directs the business. In PSAK 405 mudharabah is defined as a business cooperation agreement between two parties where the first party is the owner of the funds/ shahibul maal who provides the funds, while the second party is the fund manager/ mudharib who acts to manage the funds, and profits will be shared according to the agreement while financial losses are only borne by the owner of the funds, as long as the loss is not due to negligence by the fund manager. According to Lala (2022), the following is an explanation of each type of Mudharabah, which has 2 types, namely: 1. Mudharabah Mutlaqah is an unconditional investment. This means that entrepreneurs (Mudharib) are free to manage their capital and do whatever they want as long as their business produces a profit. 2. Mudharabah Muqayyadah is a stock investment with certain requirements. This means that not all companies can operate with this capital; only transactions specified in the contract can be managed by the borrower. Capital owners can determine the conditions when looking for a business activity to raise funds. D. Operating Efficiency Ratio (OER) The Operating Efficiency Ratio (OER) is the comparison between operational costs and operating income. The lower the operational costs and the operational income, the more efficient the bank is in reducing its operational costs. With cost efficiency, the greater the bank's profits. OER is used to measure bank management's ability to control operational costs towards operational income. The greater the operational costs, the lower the operational income, which shows that the bank is less efficient in carrying out its operational activities because the operational costs that must be borne are greater than the operational income obtained, so there is a possibility that capital will be used to cover operational costs that are not covered by operational income. On the other hand, the smaller the operational costs, the more the operational income shows that the bank is more efficient in carrying out its operational activities because the operational costs that must be borne are smaller than its operational income (Indah, 2022). III. METHOD The type of research used is quantitative research. The data used is secondary data in the form of a time series. Secondary data is data collected directly from the source. Secondary data has usually been collected by data collection institutions and published to the data user community. The data source is from Bank Indonesia (BI) data and Financial Services Authority (OJK) data from 2019 to 2022. The data analysis technique used in this research is a quantitative data analysis method using panel data regression methods and data processing using IBM SPSS version 25.0. The population in this research is Sharia Rural Banks registered with the Financial Services Authority (OJK) for the 2019–2022 period. Sample selection was carried out using the purposive sampling method with the aim of obtaining a representative sample according to the specified criteria. IV. RESULTS AND DISCUSSION A. Regression Analysis Table 1 presents multiple regression result from each variable. Multiple linear regression analysis is used to estimate the coefficients of a linear equation, including one or two independent variables that can be used precisely to predict the value of the dependent variable. “The Influence of Financing to Deposit Ratio, Mudharabah Financing, and Operating Efficiency Ratio on NonPerforming Financing” 4859 Ingrid Larasati Agustina, IJMEI Volume 11 Issue 12 December 2025 Table 1. Regression Result Model Coefficient Std. Error T Sig. (Constant) 5.428 1.207 4.497 .000 FDR .008 .012 .661 .509 Mudharabah -3.046 .000 -1.319 .189 OER .004 .001 4.340 .000 Dependent Variable: NPF The regression equation resulting from the panel data regression results in Table 4 is as follows: Y = 5.428+ 0.008FDR - 3.046MUD + 0.004OER + 1.207 The coefficients in the regression equation above can be explained as follows: 1. The constant value of 5.428 indicates that if the three independent variables (FDR, Mudharabah Financing, and OER) are constant (zero) and unchanged, the dependent variable, the NPF ratio, will be 5.428 units. 2. The value of FDR has a regression coefficient of 0.008. This means that if the FDR value increases by one unit and the other independent variables remain constant, the NPF ratio is predicted to increase by 0.008 units. 3. The value of Mudharabah Financing has a regression coefficient of -3.046. This means that if the Mudharabah Financing value increases by one unit and the other independent variables remain constant, the NPF ratio is predicted to increase by -3.046 units. 4. The value of OER has a regression coefficient of 0.004. This means that if the OER value increases by one unit, and the other independent variables remain constant. Therefore, it is predicted that the dependent variable NPF ratio will increase by 0.004 units. B. Hypothesis Testing 1. Partial Test The hypotheses are: 1. H01 FDR has no effect on NPF Ha1 FDR affects NPF 2. H02 Mudharabah Financing has no effect on NPF Ha2 Mudharabah Financing affects NPF 3. H03 OER has no effect on NPF Ha3 OER affects NPF. Based on Table 1, it can be seen that: 1. The t-test results show the value of the FDR variable using a two-way test α/2=0.05/2=0.025, where df=n-4=564=52, resulting in a t-count of 0.661 <t_table2.00665. It can be concluded that this variable has no partial or significant effect on the NPF variable with a significance value of 0.509>0.05. Therefore, it can be concluded that H01 is accepted and Ha1 is rejected. 2. The t-test results show the value of the Mudharabah Financing variable using a two-way test α/2=0.05/2=0.025, where df=n-4=56-4=52, resulting in a t-count of -1.319 <t_table2.00665. It can be concluded that this variable has no partial or significant effect on the NPF variable with a significance value of 0.189>0.05. Therefore, it can be concluded that H02 is accepted and Ha2 is rejected. 3. The t-test results show the BOPO variable value using a two-tailed test α/2=0.05/2=0.025, where df=n-4=564=52, resulting in a calculated t value of 4.340 > t_table 2.00665. It can be concluded that this variable has a partial and significant effect on the NPF variable with a significance value of 0.000 <0.05. Therefore, it can be concluded that H03 is rejected and Ha3 is accepted. 2. Simultaneous Test The hypotheses are: 1. If the sig value <0.05 or the calculated F > F table, then H0 is rejected, which means that the independent variables (X) simultaneously influence the dependent variable (Y). 2. If the sig value >0.05 or the calculated F < F table, then H0 is accepted, which means that the independent variables (X) do not simultaneously influence the dependent variable (Y). Table 2. Simultaneous Test Model Sum os Squares df Mean Square F. Sig. Regression 589.656 3 196.552 6.818 .000 Residual 6341.954 220 28.827 Total 6931.609 223 Dependent Variable: NPF Predictors: (Constant), FDR, Mudharabah, OER Based on the results of Table 2, the F_count value is 6.818, and the F_table value is 2.78. From these results, it can be concluded that F_count 6.818 > F_table 2.78. With a significant value of 0.000 < 0.05, H0 is rejected, which means that FDR, Mudharabah Financing, and OER have a simultaneous and significant effect on Non-Performing Financing. C. Determination Coefficient Test To determine the extent of influence of FDR, Mudharabah Financing, and OER on NPF, a determination coefficient test was conducted with the test results as presented in Table 3. Table 3. Simultaneous Test Model R R Square Adjusted R Square Std. Error of the Estimate Regression .292 .085 .073 5.36908 Predictors: (Constant), FDR, Mudharabah, OER The coefficient determination with an Adjusted R Square value is 0.073 indicates that the contribution of FDR, Mudharabah Financing, and OER on NPF is 7.3%. Meanwhile, the remaining 92.7% was affected by other variables outside the research. “The Influence of Financing to Deposit Ratio, Mudharabah Financing, and Operating Efficiency Ratio on NonPerforming Financing” 4860 Ingrid Larasati Agustina, IJMEI Volume 11 Issue 12 December 2025 The Effect of FDR on the NPF Ratio Based on the results of this research, it shows that FDR does not affect NPF, which means the proposed hypothesis is rejected. It can be interpreted that when the FDR value is high, there is no significant influence on the amount of NPF that occurs at Sharia Rural Banks in the 2019-2022 period. This statement is proven by the results of the partial test analysis (t-test) with a value of 0.661 < 2.00665 and a significance value of 0.509 > 0.05. These results are also supported by previous research conducted by Fauziah (2018), which concluded that the FDR variable did not influence the NPF variable. Bank Indonesia provides provisions to determine the health value of a bank. If the FDR ratio of a bank is less than 110%, it can be said that the bank is channeling funds well, meaning that the bank's liquidity is considered healthy. However, if the FDR is 110% or more, the bank's liquidity is considered unhealthy. The Effect of Mudharabah Financing on the NPF Ratio Based on the results of this research, it shows that Mudharabah Financing does not affect NPF, which is contrary to the proposed hypothesis. It can be interpreted that when the value of Mudharabah Financing is high, there is no significant influence on the amount of NPF that occurs at Sharia Rural Banks in the 2019-2022 period. This statement can be proven by the results of the partial test analysis (t-test) with a value of -1.319<2.00665 and is not significant with a significance value of 0.189>0.05. In BPRS in Indonesia, Mudharabah financing carried out between the bank and the owner of Mudharabah savings and Mudharabah deposits carries risk consequences for the owner of the funds in terms of possible losses in the bank's business (Hadi, 2015). The Effect of OER on the NPF Ratio Based on the results of this research, it shows that OER has an effect on NPF, which means that the proposed hypothesis is accepted. It can be interpreted that when the value of OER is high, there is no significant influence on the amount of NPF that occurs at Sharia Rural Banks in the 20192022 period. This statement can be proven from the results of the t-test, which shows a significance value of 0.000, where the total significance value is smaller than 0.05 (the real level of research significance), which means that the independent variable OER affects the dependent variable NPF ratio at the Sharia Rural Bank. Apart from that, it can be seen from the results of the t_count > t_table value, namely 4,340 > 2.00665, which means that OER has an effect on the NPF ratio at Sharia Rural Banks for the 2019-2022 period. This means that with every increase in OER funds by banks, the quality of financing will decrease, which can cause an increase in the non-performing financing ratio, or NPF ratio. The direct effect of OER on the NPF ratio is 8.01%. A significant influence that has a positive direction means that if OER increases, NPF will also increase, and vice versa. This is because the higher the OER value, the lower the operational income received by the bank. When a bank distributes funds in the form of financing, from the distribution of these funds, the bank will receive income, which is categorized as operating income. If income decreases, it can be said that one of the factors causing this to happen is that more funds are distributed, resulting in problematic financing or the NPF ratio (Hafilah & Mahardika, 2019). The results of this research are also supported by previous research conducted by Fauziah (2018), which concluded that the OER variable influenced the NPF variable because the results of the research obtained a significance value of 0.007<0.05. The Effect of FDR, Mudharabah Financing, and OER on NPF Ratio The results of this research show that FDR, Mudharabah Financing, and OER affect the NPF ratio. This is proven by the results of the F test, where the significance value is smaller than 0.05, namely 0.000 (0.000<0.05), which means that the independent variables jointly influence the dependent variable, namely the NPF ratio. Based on the results of simultaneous hypothesis testing in the table above. You can see the comparison between F_count and F_table, namely 6.818>2.78. Then it is accepted, and together, or simultaneously, the independent variables FDR, Mudharabah Financing, and OER affect the dependent variable NPF ratio. The coefficient of determination with an adjusted Rsquared value of 0.073 indicates that the contribution of FDR, Mudharabah Financing, and OER on NPF is 7.3%. Meanwhile, the remaining 92.7% was affected by other variables outside the research. V. CONCLUSIONS Based on the research results and discussion in the previous chapter, the conclusions obtained from this research are: 1. Financing to Deposit Ratio partially has no effect on NonPerforming Financing at BPRS in Indonesia. 2. Mudharabah Financing has no effect on Non-Performing Financing at BPRS in Indonesia. 3. Operating Efficiency Ratio partially influences NonPerforming Financing in BPRS in Indonesia. 4. 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