In Indonesia, Islamic microfinance bank is locally known as Islamic People's Financing Bank (BPRS) [1]. BPRS conducts business activities based on Sharia principles by facilitating credit to the poor, low-income people and micro, small and medium enterprises in rural and urban areas. BPRS are fostered and regulated by the Indonesian Financial Services Authority (OJK). BPRS through Islamic financial instruments provide intermediary financial services by receiving funds from investors and other stakeholders; and disburses funds, with or without benefits to the low, poor households and micro, small and medium entrepreneurs [1,2]. The BPRS also acts as an Islamic charity such as zakah (Islamic alms), infaq (spending to meet social obligation), shadaqah (alms and tithes) and waqf (Islamic endowment) or other social funds that act as specialised sources for funding and channelling it to those entitled to in the form of compensation and or benevolent loans (Qardhul Hasan) [3].

Based on data released by the OJK, it is stated that the number of BPRS has decreased from 2017 to 2019 (Indonesia Financial Service Authority, 2019), one of them is due to to worsening financial conditions. Based on Figure 1, the BPRS's ability to generate profits is still low. BPRS profit amounted to 106 million in 2013, increased to 129 million in 2014, decreased in 2015 and increased from 2016 to 2018. If seen from the percentage of BPRS overall profit is still below 50% for each increase per year, even experiencing a percentage decline In 2014-2015, several factors caused the financial performance of BPRS to decline, among others based on the Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR) and Non-Performing Financing (NPF).

The first factor that can affect financial performance is the Capital Adequacy Ratio (CAR). According to Kasmir [4], CAR is a ratio to measure capital and reserves for write-offs in bearing credit, especially the risk that occurs because interest fails to be collected. This means that the greater the CAR value reflects, the better banks' Ability to face the possible risk of loss. In previous research, Siahaan et al. [5] and Yusuf and Surjaatmadja [6] state that CAR partially has an insignificant positive effect on ROA. Meanwhile, research from Rahman and Santoso [7] and Ayu Kinanti and Purwohandoko [8] States that CAR has a negative and significant effect on ROA. The second factor that can affect financial performance is the Financing to Deposit Ratio (FDR). Financing to Deposit Ratio (FDR) is a comparison between financing provided by a bank and third-party funds that have been successfully mobilized by the bank [9]. On research Sitompul and Nasution [10], Maulida [11] and Amelia [12] states that the Financing to Deposit Ratio (FDR) does not significantly influence Return On Assets (ROA). In contrast, research by Maulidar and Majid [13] states that FDR has a positive and significant effect on performance measured by ROA.

The third factor that can affect financial performance is Non-Performing Financing (NPF). According to Husaeni [14], Non-Performing Financing (NPF) is part of the bank's financial ratios used to measure the risk of loss associated with the debtor's possibility of failing to pay off debts to the bank. Based on research Sitompul and Nasution [10] NPF does not significantly influence Return On Assets (ROA). Whereas in the research of Amelia [12] and Ayu Kinanti and Purwohandoko [8], NPF has a positive effect on ROA. Based on the results of the previous study, it was found that the results of the research on the gap between the NPF, FDR and CAR were inconsistent with the financial performance of Islamic banking. Therefore this study is still worth researching because the results are still developing.

Figure 1: BPRS Profit Percentage, 2019

Teori Stewardship

Stewardship theory is an attitude of service, where management has a philosophy of serving its stakeholders. When management carries out operational activities, the management company also provides services in the economic sector under sharia principles. Stewardship theory in this study implies that when a Islamic microfinance bank manages its operational activities under sharia principles, it is expected that the principal entrusting the customer as a steward to collect funds is ideally able to accommodate all the common interests between the principal and the steward who are based on servants who have a behavior where they can be formed. They can always be invited to cooperate in organizations, have collective or group behavior with higher utility than the individual and are still willing to serve [15].

Financial Performance 

Financial performance is an essential thing that must be achieved by every company anywhere because performance is a reflection of the company's ability to manage and allocate its resources. Financial performance has a function in describing the success achieved by banks, which can be seen from financial ratios using information from the income statement and balance sheet. Financial performance can also draw a bank's health rating. The company's financial performance is closely related to performance measurement and assessment. Performance measurement is the qualification and efficiency and effectiveness of the company is operating its business during the accounting period. Companies use performance measurement to make improvements on top of their operational activities to compete with other companies.

Non-Perfoming Financing (NPF)

Non-Performing Financing (NPF) is part of the bank's financial ratios used to measure the risk of loss associated with the debtor's possibility of failing to pay off debts to the bank [8,13,16]. Following the rules set by Bank Indonesia, a good NPF is below 5 percent. Suppose the NPF value is above 5 percent. In that case, it can be said to be unhealthy because the higher this ratio, the worse the quality of bank financing, which causes the amount of problem financing to increase, then the possibility of a bank in a problematic condition is even more excellent [8]. In this case, the financing referred to is financing provided to third parties, excluding financing to other banks.

Financing to Deposit Ratio (FDR)

The Financing to Deposit Ratio (FDR) compares the financing provided by banks and third parties successfully mobilized by the bank [9]. Dendawijaya [17] states that the provision of credit to customers can offset the bank's obligation to immediately fulfill the request of depositors who want to withdraw money that the bank has used to extend credit. FDR can reveal the extent to which the

bank's ability to return funds withdrawn by depositors by relying on the financing provided as a liquidity source. The higher the FDR level of a bank, the disbursement of funds (financing) will also increase [18].

Capital Adequacy Ratio (CAR)

CAR or often referred to as the bank's capital adequacy ratio, which is how a bank can finance its activities with its capital ownership. In other words, CAR is the ratio of the bank's performance in measuring the capital adequacy of the bank to support assets that contain or generate risk.

The calculation of capital requirements is based on risk-weighted assets. Islamic bank activation is divided into:

• Assets marked by their own capital and liabilities (wa'diah)

• Assets funded by a profit-sharing account (mudharabah)

Based on the distribution of the types of assets mentioned above, in principle, the weight of Islamic banks consists of:

• The assets financed by the bank's capital or loan funds are 100%

• The assets financed by the profit-sharing account holder are 50%

According to Bank Indonesia Regulation Number 15/12/PBI/2013 concerning Minimum Capital Adequacy Requirement for Commercial Banks, Banks are required to provide minimum capital according to the risk profile. The risk profile is the risk profile of a Bank as stipulated in Bank Indonesia regulations regarding assessing the soundness of commercial banks. The minimum capital provision is determined at the lowest as follows: a. 8% (eight percent) of Risk-Weighted Assets for Banks with risk profile rating 1 (one). According to Bank Indonesia Regulation Number 15/12/PBI/2013 concerning Minimum Capital Adequacy Requirement for Commercial Banks, Banks are required to provide minimum capital according to the risk profile, the risk profile is the risk profile of the Bank as stipulated in the Bank Indonesia regulations concerning the assessment of the soundness of commercial banks. The minimum capital provision is determined at the lowest as follows: a. 8% (eight percent) of the Risk-Weighted Asset for Banks with risk profile rating 1 (one).

Hyphothesis Development

The Effect of Capital Adequacy Ratio (CAR) on Financial Performance: CAR is a financial ratio related to bank capital. The percentage of the total bank capital will affect the bank's efficiency or failure in carrying out its activities. If a high CAR in a bank means that the bank can finance its operations, a favorable situation for the bank will substantially contribute to profitability [10]. Based on the Bank of International Settlements (BIS), the minimum capital that the bank must provide is 8% [19]. Research from Siahaan et al. [5] and Yusuf and Surjaatmadja [6] state that partially CAR has a significant positive effect on ROA. Meanwhile, research by Rahman and Santoso [7] and Ayu Kinanti and Purwohandoko [8] states that CAR has a negative and significant effect on ROA. Then the hypothesis of this study is as follows:

• H1: Capital adequacy ratio (CAR) affects the Financial Performance of BPRS

The Effect of Financing Deposit to Ratio (FDR) on Financial Performance

The Financing to Deposit Ratio (FDR) is used to measure a bank's ability to meet short-term liabilities and obligations that are due. The FDR ratio states how far the bank's ability to pay back withdrawals made by depositors by relying on the financing provided comes from third-party funds. The greater the financing, the greater the income earned, automatically the profit will increase. According to the research Sitompul and Nasution [10], Maulida [11] and Amelia [12] stated that the Financing to Deposit Ratio (FDR) does not significantly influence Return On Assets (ROA), while the research of Maulidar and Majid [13] stated that FDR has a positive and significant effect on performance measured by ROA. the hypothesis of this study is as follows:

• H2: Financing to Deposit Ratio (FDR) affects the Financial Performance of BPRS

The Effect of Non-Performing Financing (NPF) on Financial Performance

NPF is a financial ratio that shows banks' financing risk due to the provision of financing and investment of bank funds in different portfolios. The smaller the NPF, the smaller the credit risk borne by the bank. Therefore, if a bank has a high NPF, it shows that the bank is not professional in managing its credit and indicating that the bank's level of risk or credit extension is relatively high. Credit risk, which is proxied by NPF, has a negative effect on bank financial performance (proxies with return on assets [ROA]). The greater the NPF will result in a decrease in ROA, resulting in a reduction of bank financial performance due to greater credit risk. Likewise, if the NPF decreases, the ROA will increase so that financial performance will get better. In the research of Amelia [12], Maulidar and Majid [13], the results show that NPF is a negative influence on Return on Assets (ROA):

• H3: Non-Performing Financing (NPF) has a negative effect on BPRS Financial Performance

Research Model 

The research method used in this research is the causal research method, which is a study to determine the causal relationship between two or more variables, namely the independent variable on the dependent variable [20]. To test the above hypotheses, this research uses a multiple

regression model with the panel data method. This is considered suitable because the research uses combined cross-sectional and time series data, in addition to including a number of variables. Furthermore, the general formulation of the multiple regression model is given in equation.

ROA (Return On Asset) Y = CAR (Capital adequacy ratio)(X1)+

FDR (Financing to Deposit Ratio) (X2)+NPF

(Non-Performing Financing) (X3)

The dependent variables used in this study is the ROA. Meanwhile the independent variable used is the CAR, NPF and FDR. Return On Assets (ROA) ratio is a comparison between the profits after taxes (EAT) with total assets that are used to measure the company's ability in generating return on assets to be used in a certain period. Non-Performing Financing (NPF) is a comparison between non-performing financing and total financing. FDR is the ratio between the bank's amount of credit and the funds received by the bank. FDR is determined by the balance between the number of loans and public funds collected, including current accounts, time deposits and savings accounts. The following is the formula for each variable:

Population and Sample

The population in this study were all BPRS, with 130 banks that met the data. The sample used the census method in which the population was used as a sample [21]. The sample used in this research is 130 BPRS registered with the OJK from 2017 - 2019.

Descriptive Analysis

Descriptive statistics provide an overview or description of data seen from the mean, standard deviation, variant,
maximum, minimum, sum, range, kurtosis and skewness (slope of distribution) [22]. In this study, data from the Islamic microfinance bank for 2017-2019 were used, as many as 130 banks (Table 1).

The variable Return on Assets (ROA) produces a minimum value of -61.19 and a maximum value of 325.00. The minimum value is owned by PT BPRS Gotong Royong in 2017, while PT BPRS Al Ihsan owned the maximum value in 2018. While the average (mean) value is 3.5221 with a standard deviation of 21,20099, indicating that the ROA variable is not distributed. less well, because the standard deviation value is greater than the average (mean).

Table 1: Summary of Descriptive Statistics

Source: SPSS Computation, (2020), Note: ROA: Return on Asset, CAR: Capital adequacy ratio, FDR: Financing to Deposit Ratio), NPF: (Non-Performing Financing)

Coefficient of Determination

The coefficient of determination in this study uses the reference R Square, where the value of R2 ranges from 0 <R2 <1. If the coefficient of determination is closer to 1, the model used is more precise. Based on Table 2, it can be explained that the value of R Square is 0.71. This means that CAR, FDR and NPF can describe ROA by 71%. The remaining 29% is influenced by other variables that are not included in the research model. The standard Error of the Estimate is 3,94447. The smaller the Standard Error of the Estimate value will make the regression model more precise in predicting the dependent variable.

Table 2: Coefficient of Determination

^aPredictors: (Constant), NPF (X3), CAR (X1), FDR(X2), Note: CAR: Capital adequacy ratio, FDR: Financing to Deposit Ratio), NPF: (Non-Performing Financing)

Regression Analysis

Based on the results of the individual parameter significance test (t-test) in Table 3, it can be seen between each independent variable on the dependent variable, which can be explained as follows:

• CAR has a value of 2.369 with a significance level of 0.019, which means less than 0.05. This shows that CAR has a positive and significant effect on ROA

• FDR has a value of 3.188 with a significance level of 0.002, which means it is smaller than 0.05. This shows that FDR has a positive and significant effect on ROA

NPF has a t value of -0.286 with a significance level of 0.775, which means greater than 0.05. This shows that NPF has a negative and insignificant effect on ROA.

Table 3: Output of Hyphothesis Result

^aDependent Variable: ROA(Y), Note: CAR: Capital adequacy ratio, FDR: Financing to Deposit Ratio, NPF: (Non-Performing Financing), ROA: Return on Asset

According to the Peraturan Bank Indonesia No. 15/12/PBI/2013, if the bank has CAR ranging from 8% to 14%, it means that it has excellent performance because the bank could handle the risks which probably arise. However, the data show that the Islamic microfinance bank (BPRS) in Indonesia have a very high CAR ratio. It is seen from the average CAR ratio value in Table 1 (34%).

Based on the results of the t-test in Table 3. The results show that CAR has a positive effect on ROA. This study's results are in line with research conducted by Siahaan et al. [5] and Yusuf and Surjaatmadja [6], which state that ROA has a positive effect on ROA. The CAR ratio is used to see capital adequacy, which shows the bank's ability to maintain adequate capital and bank management's power to identify, measure, supervise and control risks that arise and can affect the amount of bank capital. When the higher the CAR in the BPRS, the BPRS will use its capital larger to finance its productive assets or recover losses from the investment in the assets of the BPRS. This is because every asset placement performed by the BPRS has the potential to generate profits and can create risks. Therefore, capital must also be used to safeguard the possibility of the risk of loss on investment in BPRS assets, especially those originating from the third party or public funds. Increasing the role of assets as profit generators must be accompanied by consideration of risks that may arise in order to protect the interests of fund owners. Therefore, when the CAR is more excellent, its profits will be even more significant because the bank's business scope becomes more stable with adequate capital reserves [6]. 

Based on Table 3, the results show that FDR has a positive and significant effect on ROA. The results of this study are in line with Maulidar and Majid [13], which states that the Financing Deposit Ratio (FDR) has a positive and significant effect on Return on Assets. FDR has an important role and is the ratio used to measure a bank's liquidity and fulfill obligations that must be complied with. The higher the FDR, the higher the funds distributed to third parties and it also shows that bank income is increasing. Profitable lending still pays attention to bank liquidity so that the sustainability and profitability of the bank can be maintained [6]. Thus, an increase in the distribution of financing will be followed by an increase in bank profitability. In other words, the higher the FDR, the higher the ROA. Therefore, an adequate level of credit distribution from BPRS indicates that the bank can maintain good profitability.

The next results showed that NPF had a negative and insignificant effect on ROA (Table 3). The results of this study are in line with research conducted by Amelia [12] and Maulidar and Majid [13], which stated that Non-Performing Financing (NPF) has a negative effect on profitability. The NPF ratio is used to measure how non-performing financing can be fulfilled by the productive assets owned by a bank. NPF owned by BPRS is small, so that the profitability of BPRS is good but the results are not significant, meaning that only 10% (Table 3) of BPRS have experienced such a situation. The rest, as a whole, almost 90% of BPRS in Indonesia, experienced financing problems. This, in turn, could result in the loss of opportunities for banks to obtain income from the financing provided, thus worsening its profitability.

The results show that with the increase in CAR, financial performance will also increase. With the high capital owned, the BPRS can freely place their funds for profitable investments. This can attract customers to have more confidence in the BPRS because customers are sure of the possibility of the BPRS to obtain high profits. On the other hand, with the fulfillment of bank capital, it is hoped that the losses suffered can be covered with the capital owned by the bank. So that by covering these losses, the operational activities of a bank will not experience significant fluctuations. Likewise, the FDR of the BPRS can improve the financial performance of the BPRS and this is because the BPRS can provide maximum financing to its customers and in return, the BPRS can increase its income. furthermore, the BPRS can earn good profits. However, this has a bad impact in terms of NPF from the BPRS Institution. The greater the customer's financing, the greater the chance for bad credit from the customer. This is because the results of this study indicate that NPF has a negative effect on financial performance. The more significant the financing problems in the BPRS, the greater the risk of a decline in profitability, which is not suitable for the financial sustainability of the BPRS. The advice given to the BPRS is to be more selective and be careful in providing financing to customers to increase the NPF, which in turn may result in the BPRS bank's performance deteriorating-for further research, adding the BOPO variable in affecting the financial performance of a BPRS, because BOPO affects the bank's performance.

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