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Updated: Jan 19, 2026
Institutional Markets
Determining factors of non-performing financing in Islamic microfinance institutions
Bayu Arie Fianto1, Hayu Maulida1, Nisful Laila1
1Department of Shari'a Economics, Faculty of Economics and Business, Universitas Airlangga, Jl. Airlangga No. 4, Surabaya, 60286, Indonesia.
Abstract:
This paper investigates the determining factors of non-performing financing in Islamic microfinance institutions (MFIs) in Indonesia. Using logistic regression, the study sample comprises data from 140 clients; 90 with a good financing status and 50 with a poor financing status. The results show that age, gender, occupation, and type of contract influence the non-performance of clients of Islamic MFIs in Indonesia. Probit regression confirmed the results.
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