Analysis of Effect of Capital Adequacy Ratio, Loan to Deposit Ratio, Non Performing Loan, Bopo, and Size on Return on Assets in Rural Banks at Indonesia
Journal Title: Saudi Journal of Business and Management Studies - Year 2018, Vol 3, Issue 7
Abstract
Abstract:The purpose of this research is: 1) To know and analyze Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loan (NPL), BOPO, and SIZE, partially and simultaneously to Return on Assets (ROA) at Conventional Rural Bank in Indonesia; 2) To know and analyze the influence of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loan (NPL), BOPO, and SIZE, partially and simultaneously to Return on Assets (ROA) at Conventional Rural Bank in Indonesia. The population in this studies all credit banks in Indonesia period 2008-2016. This research is explanatory. The type of data is secondary data (publication of Central Financial Services Authority, Central Bank Indonesia, and other relevant publications), analytical tools using multiple regression. The results showed: 1). CAR tends to be higher in the healthy predicate, LDR is in the category of the healthy category, NPL is still in the predicate category, but the trend is getting worse, BOPO is still controlled and categorized as the healthy category, and Size shows growing trend positive; 2). partially CAR and NPL, negatively significant is not significant, LDR has a positive effect is not significant, while BOPO and size have a significant negative effect on Return on Asset; simultaneously tested that CAR, LDR, NPL, BOPO, and SIZE have a significant effect on Return on Assets. Keywords: return on assets, loan to deposit ratio, non-performing loan, size, rural banks.
Authors and Affiliations
Dedi Kusmayadi
Keywords
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