ANALYSIS OF FACTORS THAT INFLUENCE NON-PERFORMING LOAN AT BANK BNI PERIOD 2005 TO 2012

Abstract

The objectives of this research are to investigate the effect of Capital Adequacy Ratio (CAR), Return on Assets (ROA), and Loan to Deposit Ratio (LDR) to Non-Performing Loan (NPL) which is as a proxy of Financial Performance at PT Bank Negara Indonesia during period 2005 to 2012. This research is using time series data from PT Bank Negara Indonesia’s financial report quarterly from Q1 of 2005 to Q4 of 2012. 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 altogether influence of CAR, ROA and LDR toward NPL of Bank BNI. While the research of t test shows ROA, and LDR partially has negative and significant influence to NPL, while CAR has positive but not significant influence to NPL. This research recommends that Bank BNI should be concern to factors that influence NPL to decrease the problem of credit.