THE EFFECT OF CREDIT PORTFOLIO DIVERSIFICATION STRATEGY ON THE RISK OF BAD CREDIT IN INDONESIAN ISLAMIC BANKING FOR 2018-2022 PERIOD

Purpose – The purpose of this study is to examine the effect a credit portfolio diversification strategy on risk bad loans in Islamic banking Indonesia for 2018-2022 period.
 Design/methodology/approach Exogenous variables include based contract and type usage. Meanwhile, endogenous variable banking. loan use calculated using Herfindahl-Hirschman Index (HHI). uses Non Performing Financing (NPF) proxy. population are Commercial Banks Sharia Business Units saturated sample technique. In addition, Ordinary Least Square (OLS) Regression Analysis used data analysis method.
 Findings results indicate that usage both partially simultaneously has significant Banking.
 Research limitations/implications This limited commercial banks business units Indonesia. There three types financing, namely financing contract-, sector not beneficiary, but only contracts due research time.
 Practical implications role reducing may be useful sharia banking, Indonesia, related need policy reduce companies as well further researchers an additional reference. topic factors influence level banking.
 Originality/value provides new insights about can significantly affect