The Model of Financial Banking in Indonesia

Authors

  • Pranoto ‎
  • Udin Ahidin
  • Ali Maddinsyah

Abstract

The purpose of this study is to explain in terms of effect the loan to deposit ratio (LDR), Non-Performing Loan (NPL), and Operating Expenses Against Operating Income (BOPO) on Earnings Banking proxies by Return on Assets ( ROA). Non-Performing Loan (NPL), and Operating Expenses Against Operating Income (BOPO) on Earnings Banking proxies by Return on Assets ( ROA). .Data used in this study taken from the annual financial report of any commercial banks 2015-2019. Sample website taken from 10 total commercial banks with assets above 372.5 trillion in the period he used the technique 2015-2019. Analysis of model with random approach. The results showed the CAR variable have positive and significant impact on ROA, LDR variable have positive effect and no significant on ROA, NPL variable and BOPO variable have negative effect and significant on ROA. The predictive capacity of five independent variables on ROA amounted to 71.50% which indicated by R2, and the last of 28.50% is explained by other variables outside the research model.

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Published

2020-01-25

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Section

Articles