Enrichment : Journal of Management
Vol. 13 No. 1 (2023): April: Management Science And Field

Analysis of the influence of size, capital adequacy ratio, loan to deposit ratio, non performing loan on the profitability of commercial Banks Registered at OJK

Finoliya Wahyu Gita Rosa (Universitas Hayam Wuruk Perbanas, Indonesia)
Nur Suci Mei Murni (Universitas Hayam Wuruk Perbanas, Indonesia)



Article Info

Publish Date
12 Apr 2023

Abstract

This study aims to analyze the effect of SIZE, Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loans (NPL) on the profitability of national private commercial banks proxied by Return on Assets (ROA). The population in this study are foreign exchange national private commercial banks registered with the Financial Services Authority (OJK) for the 2018-2021 period. Sampling used a purposive sampling method with the criteria of national foreign exchange private commercial banks registered with OJK during the 2018-2021 period, national foreign private private public banks that have issued financial reports as of December 31 during the 2018-2021 period, as well as national foreign exchange private commercial banks that has complete data and information needed in research during the 2018-2021 period. The number of samples used in this study were 40 foreign exchange national private commercial banks. This study uses data obtained from the Bank's Annual Financial Report issued by each bank. The analysis technique used is multiple linear regression analysis and using a quantitative approach.From the simultaneous hypothesis test results (F test) it shows that SIZE, Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loans (NPL) together have an effect on Return on Assets (ROA) with a significant value 0.000. Partially (t test) shows that SIZE, Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) have no effect on Return on Assets (ROA), while Non Performing Loans (NPL) have an influence on Return on Assets (ROA).

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Journal Info

Abbrev

enrichment

Publisher

Subject

Economics, Econometrics & Finance

Description

The Enrichment : Journal of Management offers wide ranging and widespread analysis of all surfaces of management and science. Published two times per year, it delivers a emphasis for universal proficiency in the vital methods, techniques and areas of research; presents a opportunity for its readers ...