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Non-cash payments have been increasing significantly, followed by its substitution and efficiency effects. Cash payment is substituted, inducing decrease of cash holding by economic agents, while on the other hand more money enters the banking system. The increase of non-cash payments also cuts transaction costs, and the economy runs more efficiently.Using Structural Cointegrating VAR, its impacts on the economy are investigated. The result shows that cash holding decrease, while money stock M1 and M2 increase. The increase of non-cash payments also induces GDP growth and slight price decrease. Its implication to monetary policy is also analyzed, showing decrease of BI rate and monetary policy cost.JEL Classification: E41, E51, E58Keywords: non-cash, payment system, money demand

Non-Performing Financing (NPF) is one of the indicators in evaluating the performance of sharia banks. The high NPF level indicates the low performance of sharia banks that shows many financing problems. The research objective was to identify the factors that influence NPF with regard to general and micro-segment. NPF value influenced by several factors, both internally and externally, such as Financing to Deposit Ratio (FDR), Capital Adequacy Ratio (CAR), Net Operating Margin (NOM), Return On Equity (ROE), inflation, exchange rate, and Gross Domestic Product (GDP).The study used quarterly data from three sharia banks, namely BNI Syariah, BRI Syariah, dan BSM. The methods employed were descriptive analysis and panel data regression. The results showed that FDR, NOM, and ROE were the NPF influencing factors for the general segment. Meanwhile, CAR, NOM, ROA, BOPO, and GDP were the NPF influencing factors for the micro-segment.

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