Social Sciences
3 years ago

Non-performing loans negatively impact bank profits, deposit ratios boost returns.

1 view
Jurnal Manajemen dan Bisnis
PENGARUH NON PERFORMING LOAN (NPL) DAN LOAN TO DEPOSIT RATIO (LDR) TERHADAP RETURN ON ASSET (ROA) PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA
Randi Kosim Siregar, Sabeth Sembiring

Paper Summary

The study looked at how Non-Performing Loans and Loan to Deposit Ratio affect the Return On Asset of public banking companies in Indonesia from 2010 to 2012. They found that both Non-Performing Loans and Loan to Deposit Ratio together have a significant impact on Return On Asset. Non-Performing Loans have a negative effect on Return On Asset, while Loan to Deposit Ratio has a positive effect. Around 32.3% of the variation in Return On Asset can be explained by Non-Performing Loans and Loan to Deposit Ratio.

Related papers

Business, Management and Accounting
10 months ago

State-Owned Banks Face Profitability Challenges Due to Operational Expenses and Non-Performing Loans

Financial Management
Social Media
Islamic Banking
2 views
Theme background image
Social Sciences
a year ago

Non-Performing Loans Drag Down Profits for Indonesian Commercial Banks.

Social Media
Islamic Banking
Covid-19 SME Impact
1 view
Theme background image
Social Sciences
3 years ago

Banking companies in Indonesia see ROA impacted by NPL and NIM.

Social Media
Financial Management
Covid-19 SME Impact
1 view