MENAKSIR BANK SIZE, COVERAGE RATIO, DAN INFLASI TERHADAP NON PERFORMING LOAN

Authors

  • Julia Fakultas Ekonomi, Universitas Bangka Belitung
  • Karmawan Fakultas Ekonomi, Universitas Bangka Belitung
  • Darman Saputra Fakultas Ekonomi, Universitas Bangka Belitung
  • Christianingrum Fakultas Ekonomi, Universitas Bangka Belitung

Keywords:

Bank Size, Coverage Ratio, Inflation

Abstract

The purpose of this study was to analyze the effect of bank size, coverage ratio, and inflation on non-performing loans of banking companies listed on the IDX. This type of research is quantitative using secondary research data collection techniques. The sampling technique used in this study is purposive sampling method, namely sampling techniques with
certain considerations based on research interests. Based on the predetermined sampling criteria, the research sample was obtained as many as 42 companies. Data obtained from financial reports published by the Indonesia Stock Exchange (IDX) and collected using the documentation method. Data analysis used panel data regression analysis to test the effect of the dependent variable and the independent variable. The results of this study indicate that the bank size and coverage ratio variables have a significant effect on non-performing loans. This is because there is a direct relationship
between bank size and the coverage ratio in influencing the credit of banking companies. Bank size affects NPL because with a large number of assets, companies are more flexible in managing their activities in channeling credit, without worrying about asset shortages, then for the coverage ratio where the stable Coverage Ratio is the banking effort to hold back the rate of NPL. Meanwhile, inflation has no effect on non-performing loans, this is due to the low relationship between inflation and the NPL of banking companies. Low inflation during the study period meant that inflation did not have a significant effect on NPLs, so that customers could still fulfill their obligations without being hindered by inflation.

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Published

2021-03-23

Issue

Section

Articles