DETERMINAN NON PERFORMING LOAN PADA BANK UMUM YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

This research aimed to examine the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and Operating Expenses to Income in Sales (BOPO) on Non- Performing Loans (NPL) at General Banks listed on the Indonesia Stock Exchange (IDX). The research was quantitative. The population was 43 conventional General Bank companies listed on the Indonesia Stock Exchange (IDX) during 2020-2022. Moreover, the data collection technique used purposive sampling, in which the sample was based on the criteria given. In line with that, there were 30 companies as the sample. Furthermore, the data were observed for 3 years with 85 observation data. The data analysis technique used multiple linear regression. The result indicated that: (1) the Capital Adequacy Ratio (CAR) did not affect Non-Performing Loans (NPL), (2) Likewise, the Loan to Deposit Ratio (LDR) did not affect Non-Performing Loans (NPL), (3) On the other hand, Operating Expenses to Income in Sales (BOPO) had a positive effect on Non-Performing Loans (NPL).