Banking Sector in Indonesia Sees Positive Impact on Return On Assets
The study looked at how Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and Non-Performing Loans (NPL) affect Return on Assets (ROA) in the banking sector on the Indonesia Stock Exchange from 2014 to 2018. They found that CAR has a negative impact on ROA, while LDR and NPL do not have a significant effect. However, when considered together, CAR, LDR, and NPL have a positive impact on ROA.