ANALYSIS OF FACTORS THAT INFLUENCE NON-PERFORMING LOAN AT PT. BANK RAKYAT INDONESIA DURING PERIOD 2006 TO 2013

Abstract

The objectives of this research are to investigate the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Net Interest Margin (NIM) and Operating Expenses to Operating Cost (BOPO) to Non-Performing Loan (NPL) which is as a proxy of Financial Performance at PT Bank Rakyat Indonesia during period 2006 to 2013. This research is using time series data from PT Bank Rakyat Indonesia’s financial report quarterly from Q1 of 2006 to Q3 of 2013. Analysis technique which is used is multiple linear regression analysis and this research is using several tests which are hypothesis testing and classical assumption testing. Hypothesis testing is using t test to test partial influence and F test to test simultaneous influence in level of significance 5%. Other test in this research is classical assumption test including normality test, multicolinierity test, heteroscedastisity test and autocorrelation test. During the research period, it shows that the research data was normally distributed. According to multicolinierity test, heteroscedasticity test and autocorrelation test, there is no deviation of classical assumption in the research data, thus it indicates that the data have fulfilled the condition to use multiple linier regression model. The result of F test in this research shows the significant simultaneous influence of CAR, LDR, NIM and BOPO toward NPL of PT. Bank Rakyat Indonesia. While the research of t test shows CAR, LDR and BOPO partially has positive and significant influence toward NPL, while NIM has positive but not significant influence toward NPL. CAR has dominant influence toward NPL among the independent variables with coefficient 0.204. This research recommends that PT. Bank Rakyat Indonesia should be concern to factors that influence NPL to prevent the problem of NPL.