The main problem of this research is because the rapid development of the market share of Islamic banking in Indonesia and Malaysia in the past five years is interesting because the risks with varying complexity will always be close to the operations of Islamic banks. This study aims to determine the effect of the variable Return On Assets, Loan Loss Provision and Loan to Asset Ratio on credit risk proxied by the NPF and to know the differences in determinants of credit risk in Islamic banking in Indonesia and Malaysia. This study uses panel data regression analysis techniques and different tests. The sample in this study were 11 Islamic banks in Indonesia and 11 Islamic banks in Malaysia that had complete financial reports from 2011 to 2017. The results of the study showed that there were significant effects by the ROA and LLP variables on the proxied credit risk by NPF. In addition, there are differences in the determinants of credit risk for Islamic banks in Indonesia and Malaysia, where Islamic banks in Malaysia are better in terms of asset use than Islamic banks in Indonesia, Islamic banks in Indonesia are better prepared to face the risk of loss from investing in assets productive and Islamic banks in Malaysia have lower bank liquidity capabilities than Islamic banks in Indonesia.The implication for managerial is that management is expected to be able to anticipate through enlarged reserves so that Islamic banks are better prepared to face future credit risks. In addition to paying attention to the reserve side of losses, investors need to pay attention to the side of profitability because it also has a large influence on Credit Risk.