Abstract:

Islamic banking in Indonesia had developed quite rapidly. However, this development is also followed by the high of financing risk faced. Our study aimed to determine the effect of profitability, corporate governance, capital, bank size, and financing structure to the financing risk of Islamic banks in Indonesia. This study used 13 Islamic banks as sample. The results showed that return on asset has a negative effect on financing risk; corporate governance, capital adequacy ratio, and bank size have a positive effect on financing risk. However, financing ratio has no effect on financing risk.