Three sharia banks have a gross non-performing loan (NPL) ratio above 10 percent. MayBank Syariah recorded the highest NPL among the 12 sharia banks as of June 2016. Data from the Financial Services Authority (OJK) shows that MayBank's gross NPL in June 2016 was 29.31 percent. In second place was Bank BJB Syariah with an NPL of 17.09 percent, followed by Bank Victoria Syariah at 12.03 percent, while Bank Muamalat recorded a non-performing loan ratio of 7.23 percent in fourth place.
The sluggish business climate resulting from the domestic and global economic slowdown has led to an increase in non-performing loans in the banking sector. The high ratio of non-performing loans in several sharia banks needs to be monitored to prevent future problems.
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