Factors Affecting Non-performing Loans at PT BPR Pijer Podi Kekelengen

PT Bank Perkreditan Rakyat Pijer Podi Kekelengen serves the community through the banking intermediation function. This bank receives funds from the public in form of deposits and re-disburses them in the form of credit. Credit given to the public has a risk in returning installments to the bank. Banks must manage loans with the principle of prudence so as not to become problematic. The credit given can become problematic if the return is in arrears and will cause a Non-Performing Loan (NPL). The higher the NPL ratio, the greater the number of non-performing loans, so the possibility of banks being in problematic conditions increases. The performance of banks can be seen from the quality of their loans where the greater the loans that are less current, doubtful, and bad, will form NPLs which will be a negative indicator for banks. Banks will try to find solutions in order to solve non-performing loans. Factors that affect NPL in this study were the credit growth ratio, capital adequacy ratio (CAR), return on asset (ROA), return on equity (ROE), operating income operating expenses (BOPO), and loan-to-deposit ratio (LDR) as independent variables at PT BPR Pijer Podi Kekelengen using regression with Eviews 11 tools with a population of 100 data on a quarterly basis from 2016 to 2020 in five offices. There are three models tested, namely the common effect model, fixed model effect, and random effect model. The model with the best model results was the random effect model. The results of this study showed that the credit growth ratio had a negative and significant effect on NPLs, the CAR ratio had a negative and significant effect on NPLs, and the BOPO ratio had a positive and significant effect on NPLs, while the ratios simultaneously affected NPL.