ANALYSIS OF SHARIA AUDIT IN REDUCING THE RISK OF NON-PERFORMING FINANCING AT BANK SYARIAH INDONESIA SUDIRMAN ATAS PEKANBARU

Abstract

The development of Islamic banking in Indonesia has shown significant growth in recent years. However, this growth is still accompanied by challenges, particularly in managing financing risks that may lead to non-performing financing. This study discusses the role of sharia audit in reducing the risk of non-performing financing at Bank Syariah Indonesia KCP Sudirman Atas Pekanbaru, focusing on how sharia audit is implemented in the bank’s operational activities and how it contributes to controlling financing risks. The research questions are aimed at understanding the implementation of sharia audit, the factors influencing non-performing financing, and the contribution of sharia audit in minimizing these risks.

This study employs a descriptive qualitative method supported by a literature review and field information to provide a deeper understanding of the issues examined. Data analysis was conducted systematically by interpreting various literature sources and the bank’s operational conditions. The findings reveal that sharia audit plays an important role in ensuring compliance with sharia principles, strengthening internal control systems, and helping detect potential risks at an early stage. In addition, non-performing financing is influenced by internal factors such as the accuracy of financing analysis and external factors such as customers’ economic conditions. Therefore, sharia audit makes a significant contribution to improving risk management quality and maintaining the operational stability of Islamic banks. Overall, sharia audit serves as an essential instrument in supporting the effectiveness of financing risk management.