NPL DETERMINANT OF BUKU IV COMMERCIAL BANKS IN INDONESIA
Bank always faced several risks where one of the main risks is credit risk. Credit risk can be captured from Non-Performing Loan (NPL) ratio to assess bank performance and bank soundness level. A high NPL ratio indicate that bank fail to manage credit quality which can cause liquidity problems, re...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/75303 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Bank always faced several risks where one of the main risks is credit risk. Credit risk can be captured
from Non-Performing Loan (NPL) ratio to assess bank performance and bank soundness level. A high
NPL ratio indicate that bank fail to manage credit quality which can cause liquidity problems, reduce
profit caused by uncollectable loan, and reduced capital. This research focused on BUKU IV commercial
banks to determine the effect of CAR, LDR, OEOI as independent variables to NPL as dependent
variable. The data used is quarterly data of each year from 2015 – 2021. This research using statistical
data analysis to find the relationship between two or more variables with the aim of testing
predetermined hypothesis. The result of this research show that CAR, LDR, and OEOI
simultaneously have an affect the NPL by 48,80%. This research BUKU IV commercial banks that
internal factors are very important to be considered and controlled in order to maintained credit
performance and it also can avoid increasing on non-performing loans, which will have a negative effect
on the company portfolio and can affects company’s capital, liquidity, and profit.
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