The Impact of Internal and External Factors on Financing of Sharia Banks in Indonesia

Financing has an important role for the community and the bank. This research aims to find out the factors influencing the financing level (Small and Medium-sized Enterprises or SME Financing and non-SME Financing) of sharia banks in Indonesia from 2010 until June 2015 by using multiple linear regression model. The results of this research indicate that all of the variables, namely Bank Indonesia Sharia Certificate or SBISs bonus rate, inflation rate, Third-party Funds (DPK), Non-Performing Financing (NPF), Financing to Deposit Ratio (FDR), Return on Assets (ROA) simultaneously influence both SME and non-SME financing. Partially, SBISs bonus rate has no impact on sharia banks financing in Indonesia, Inflation has a negative impact on both financing, DPK and FDR has a positive impact on both financing, NPF has a negatif impact on SME financing but has no impact on non-SME financing, and ROA has no impact on both financing