Analysis of the Effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loan (NPL) and Operational Costs Operating Income (BOPO) on Return on Assets (ROA) in Conventional Commercial Banks (2018-2022)
Journal Title: Journal of Economics, Finance and Management Studies - Year 2025, Vol 8, Issue 06
Abstract
This study to analyze the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loan (NPL), and Operational Costs Operating Income (BOPO) on Return on Assets (ROA) in conventional commercial banks in Indonesia during the period 2018-2022. CAR is measured based on the bank's capital adequacy ratio, LDR reflects liquidity, NPL indicates credit risk, and BOPO represents operational efficiency. The data used is quantitative data obtained from financial statements published on the official websites of the Indonesia Stock Exchange (IDX) and the Financial Services Authority (OJK). The research sample is selected using a purposive sampling method based on specific criteria. Multiple linear regression analysis is used to test the direct influence of the independent variables on ROA. The results show that CAR and LDR have no significant effect on ROA, while NPL and BOPO have a significant effect on ROA. The implication of this research is that conventional commercial banks in Indonesia need to focus on credit risk management and operational efficiency to enhance profitability.
Authors and Affiliations
Akmal Nadhif Hibatullah , Rina Yulistia , Edi Nursanta,
Keywords
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- EP ID EP768297
- DOI 10.47191/jefms/v8-i6-08
- Views 5
- Downloads 0
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