Empirical study of Indonesian Banks Group 1 based on Core Capital (KBMI 1): The Impact of Bank Internal Factors on Non-Performing Loan Moderated by BOPO

The Impact of Bank Internal Factors on Non-Performing Loan Moderated by BOPO

Abstract

This research explores the NPL of Indonesian banks which are categorized in the Core Capital group of up to IDR 6 trillion or KBMI 1. The research sample is 25 conventional KBMI 1 banks that are on the Indonesia Stock Exchange from 2016-2021. Analysis based on panel data consists of 4 independent variables (CAR, LDR, NIM, CASA); a moderating variable (BOPO) and dependent variable (NPL); and run by multiple linear regression and moderating regression analysis. Statistical results show that all independent variables have no significant direct effect on the dependent variable, while BOPO only strengthens the effect of CAR research to pursue substantive results.

Keywords: CAR, LDR, NIM, CASA, BOPO.