NPL DETERMINANT OF BUKU IV COMMERCIAL BANKS IN INDONESIA

• Main Author: Widya Lestiyoriani, Steffi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/75303
• Institution: Institut Teknologi Bandung

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.