Factors Affecting Non Performing Loans at PT BPR Pijer Podi Kekelengen Tenny Sitepu, Isfenti Sadalia, Iskandar Muda
Sekolah Pascasarjana
Universitas Sumatera Utara
Abstract
Non Performing Loan (NPL) is a risk faced by the Bank over providing credit to the community. NPL is a ratio that indicates the ability of the bank to manage non-performing loans provided by banks. The higher the NPL ratio, the greater the number of non-performing loans, so the possibility of banks in troubled conditions increases. Banking performance can be seen from its credit quality where the greater the less current, doubtful and bad credit will form an NPL that will be a negative indicator for banks. Banks will try to find solutions to solve non-performing loans. Factors that affect NPL in this research are credit growth ratio, Capital Adequacy Ratio (CAR), Return On Asset (ROA), Return On Equity (ROE), Operating Expenses Operating Income (BOPO) and Loan Deposit Ratio (LDR) as independent variables at PT BPR Pijer Podi Kekelengen using regression with eviews 11 tools with a population of 100 data on a quarterly basis from 2016 to 2020 in 5 offices. There are three models tested, namely Common Effect Model, Fixed Model Effect and Random Effect Model with the best model results, namely Random Effect Model. The results of this study that the ratio of credit growth in the coefficient of regression equation of -0.0078 shows that the negative and significant effect on NPL, the coefficient of the CAR ratio regression equation of -0.2284 has a negative and significant effect and the BOPO ratio regression equation coefficient of 0.0645 has a positive and significant effect, while simultaneously affecting 74.59% to NPL.
Keywords: Non Performing Loan, Credit Growth, Capital Adequacy Ratio, Operating Expenses Operating Income