The Analysis of Risk Management on Syariah Banking in Indonesia
Abstract
Syariah banking in Indonesia has been developing rapidly for many years. The number of the
syariah banks shows that syariah financial sector is good enough in managing the society fund. The society
trust on the syariah trade cannot be separated from the existence of the syariah banking. In order to be able
to manage the fund correctly, appropriately, and effectively, the syariah banking should pay attention on the
risk will be faced by them. One of the harmful risks is credit. The aim of this study is to gather information
on the risk management on syariah banking in Indonesia. Sample of this study is six syariah banks in
Indonesia. The banks were chosen based on the purposive sampling method. The method used in this study
was qualitative descriptive analysis in which the researcher presented the exploration of the findings to
answer research questions. From this study, it can be concluded that the six – syariah bank observed based
on the portfolio composition and concentration level of defrayal credit ratio is the biggest factor in defining
the credit risk. Based on the quality of the defrayal given to the third party indicates that the syariah banks
in Indonesia receive high credit risk.