Safeza SapianMansur Masih2024-05-282024-05-2820182023-6-61007-19https://mpra.ub.uni-muenchen.de/100719/1/MPRA_paper_100719.pdfhttps://oarep.usim.edu.my/handle/123456789/7575This paper makes an attempt to investigate whether the macroeconomic factors contribute to the credit risk exposure and non-performing financing (NPF) of Islamic banks. Malaysia is taken as a case study. The standard time series techniques are used to analyze the issue. The variables that have been chosen for the study are gross domestic product (GDP), Non-Performing Financing rate, Islamic financing rate (IFR) and unemployment rate (UMPT). The findings tend to indicate that Islamic Financing rate (IFR) stands out as the only factor that had a significant impact on the credit risk exposure and non-performing financing as well as the performance of Islamic banks in the context of Malaysia.en-USIslamic Banks, Credit Risk, Non-performing Financing, Time Series Analysis, MalaysiaArticle12611