COMMERCIAL BANKS’ PERFORMANCE AND CREDIT RISK IN INDONESIA
DOI:
https://doi.org/10.61841/p264de35Keywords:
Capital Adequacy Ratio, Loan to Deposit Ratio, Non Performing Loans, Commercial BanksAbstract
This research aims to measure financial performance and its effect on the level of credit risk. Financial performance used to predict credit risk consists of the level of capital adequacy measured through the Capital Adequacy Ratio (CAR) and the amount of credit measured through a Loan to Deposit Ratio (LDR), while credit risk is measured through the level of non-performing loans (NPLs). The research method uses descriptive and verificative methods. The research was conducted on commercial banks listed on the IDX during the period of 2014-2018. Observations were made on 35 commercial banks through the purposive sampling method. Data analysis using panel data regression models by testing as required. The results showed that the Capital Adequacy Ratio (CAR) has a significant effect on credit risk (NPLs), while the Loan to Deposit Ratio (LDR) has no significant effect on credit risk (NPLs).
Downloads
Published
Issue
Section
License
Copyright (c) 2020 AUTHOR
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
