The Effects of Green Finance, NPF, CAR, and Firm Size on the Financial Sustainability of Islamic Commercial Banks in ssIndonesia, 2021–2025
DOI:
https://doi.org/10.24905/icobis.v2i1.52Keywords:
Financial sustainability, green finance, non-performing financing, capital adequacy ratio, firm sizAbstract
This study aims to analyze the effects of green finance, non-performing financing (NPF), capital adequacy ratio (CAR), and firm size on the financial sustainability of Islamic commercial banks in Indonesia over the 2021–2025 period. It uses a quantitative approach with secondary data taken from financial statements and sustainability reports published on the website of the Financial Services Authority (OJK) and the official websites of the respective banks. Of the 14 Islamic commercial banks in the population, 9 banks met the purposive sampling criteria, yielding 45 observations. The data were analyzed using multiple linear regression in SPSS version 22. The results show that green finance, NPF, CAR, and firm size each have a significant effect on financial sustainability. Simultaneously, these four variables also have a significant effect on the financial sustainability of Islamic commercial banks in Indonesia during 2021–2025.
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