The growth in the development of Islamic banking financing in the Banyumas area, especially Bank Muamalat Purwokerto, has decreased due to high non-performing financing for customers affected by the COVID-19 pandemic. The increase in non-performing financing to customers is one of the reasons for the decline in the level of development of bank financing, especially at Bank Muamalat Purwokerto. In addition, the COVID-19 pandemic has made banks more stringent in analyzing customer eligibility in the form of applying the 5C principle at the beginning of financing applications to minimize the occurrence of non-performing financing. The purpose of this study wa s to determine the application of the 5C principles carried out by Bank Muamalat Purwokerto during the COVID-19 pandemic and the positive and negative impacts of the COVID-19 pandemic.
The research uses the type of field research. Sources of data used are primary data sources derived from interviews, as well as secondary data orginating from journals, books, laws, articles, and previous theses. Data collection techniques from interviews and documentation. The data analysis used is inductive way, namely connecting specific facts that are already known to a general conclusion.
The result of this research that the application of the 5C principle carried out by Bank Muamalat Purwokerto during the pandemic remins the same as before the pandemic. All done without taking sides with anyone and without discriminating againts one another. However, during the covid-19 pandemic, Bank Muamalat Purwokerto prioritized the principle of character in assessing customer eligibility. In addition, the covid-19 pandemic has greatly affected the development of Bank Muamalat Purwokerto. The negative impact of the pandemic is the decline in bank development, especially in financing and the increase in non-performing financing.