ANALYSIS OF RISK MANAGEMENT ON ISLAMIC BANKING FINANCING AT SHARIA BUSINESS UNIT OF BANK BTN ("AN APPROACH OF THE FOUR EYES PRINCIPLE" METHOD )

Abstract

This study aims to determine the successful implementation of four eyes principles on Sharia Business Unit at Bank BTN in order to minimize the risk of fund disbursement. This risk is measured through a non-performing financing (NPF) ratio. Several other factors that are suspected to have an effect on NPF are profit, finance to deposit ratio (FDR), Operational Cost to Oerational Income Ratio (OCOIR) and bank size. The research was conducted on 15 Regional Officer in Indonesia with research period 2014 until 2017. The method of analysis used is panel data regression approach fixed effect model and different test (t test). The results show that FEP has succeeded in reducing the NPF ratio, it is proven from statistical processing that FEP has negative effect on NPF and also reinforced by t test that there is significant difference of NPF value before and after application of four eyes principles (FEP). Other variables that affect the NPF are Profit has positif affect on the NPF, size has a negative effect on NPF, while FDR and OCOIR have no effect on NPF.