Author(s): Erick, Ubud Salim, Nur Khusniyah Indrawati, Sumiati
The aim was to examine the effect of performance, liquidity, governance, and moderation of deposit insurance rates on bankruptcy risk in shariah banking in Indonesia. This research was conducted on shariah book II banks operation in Indonesia by taking samples of shariah banks' quarterly financial reports on website www.ojk.go.id for the period 2014-2019. This study found that variable Operating Expenses to Operating Revenue (OEOR) influences the bankruptcy risk of shariah banking in Indonesia, while return on assets, and net income margin do not affect the bankruptcy risk in shariah banking. Liquidity as measured by financing to deposit ratio does not affect the bankruptcy risk of shariah banking. Shariah banking governance as measured by the GCG rating does not affect the bankruptcy risk of shariah banking. The deposit insurance rate (DIR) as moderation weaken the effect of operating expenses to operating revenue on bankruptcy risk in shariah banking.