ANALYSIS OF THE EFFECT OF CAR, LDR AND NPL ON THE DISTRIBUTION OF MSME CREDITS ON COMMERCIAL BANKS IN INDONESIA PERIOD 2014-2017

Abstract

This study was to determine the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and Non-Performing Loans (NPL) to the lending of Micro, Small and Medium Enterprises (MSMEs). The object of this research is commercial banks listed on the IDX in the 2014-2017 period. This research was conducted on 124 public banks listed on the IDX at the vulnerable time 2014-2017 using a quantitative descriptive approach. Therefore the data analysis used is statistical analysis in the form of multiple linear regression tests. The results of this study indicate that partially and simultaneously the variable CAR, LDR and NPL have an effect on MSME lending to commercial banks listed on the IDX in the 2014-2017 period. This is evidenced from the results of the simultaneous test (F test) and the partial test results (t test) also show significant values ​​of the three independent variables that support the hypothesis. Therefore the results of the test from this study state that there is a simultaneous influence between the CAR, LDR and NPL variables on MSME lending to commercial banks found on the IDX in the 2014-2017 period.

Keywords: Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loans (NPL), MSMEs, credit

DOI: 10.7176/JRDM/61-07

Publication date: November 30^th 2019