The Good Corporate Governance Ranks of Sharia Banks and Its Influence towards Credit Risk Peringkat Good Corporate Governance Bank Umum Syariah dan Pengaruhnya Terhadap Risiko Kredit

This research attempts to empirically analyze the rank of Good Corporate Government implementation of Sharia Banks in Indonesia and its influence towards credit risk. This research uses Annual Report and Good Corporate Governance Reportfor the year 2014 of 11 Sharia Banks in Indonesia. The data were collected by using documentation method and literature study. Analysis of data was conducted by using descriptive analysis and t-test statistic to answer the hypothesis proposed in this research. The findings from the research showed that 6 banks attain predicate “good” (rank 2), 4 banks attain predicate “excellent” (rank 1), and 1 bank attains predicate “fair” (rank 3). The result of t-test statistic indicates that the rank of Good Corporate Government Implementation of Sharia Banks has positive and significant influence towards credit risk (Non Performing Financing) with α = 5% (sig.0.015 < 0.05). It means that is accepted. Keywords: Credit, Risk, Sharia Banks