THE INFLUENCE OF CAPITAL ADEQUACY (CAR), GROWTH OF THIRD PARTY FUNDS (DPK), NON-PERFORMING CREDIT (NPL) ON CREDIT DISTRIBUTION OF CONVENTIONAL COMMERCIAL BANKS ON THE INDONESIAN STOCK EXCHANGE 2017–2021

Abstract

Credit distribution carried out by banks is one of the state's income sectors, which in this case is used to maintain economic stability, improve the level of community welfare, help develop MSMEs through capital loans provided by banks, therefore indirectly credit distribution is carried out banking is an effort to increase the level of welfare of citizens, the level of demand for credit has increased from year to year. On the other hand, banks also consider CAR, DPK, NPL obtained from lending, there is a fear that banks will not be able to collect funds, excessive credit distribution will result in risks bad and non-performing loans widened which made banks lose their balance. The aim of this research is to determine empirically the influence of the capital adequacy ratio, growth of third party funds, non-performing loans on the distribution of bank credit registered in BEI for the 2017-2021 period. The population in this research is 46 banks. With this population, banking samples were taken using the method purposive sampling resulted in 26 banks that met the specified criteria. The type and source of data obtained from secondary data sources, the research method used is quantitative using multiple linear regression processed with the SPSS16 program. The results of multiple linear regression analysis and hypothesis testing can be concluded that simultaneously (F test) CAR, DPK Growth, NPL have an effect on banking credit distribution, while the results of partial analysis (T test) CAR, DPK Growth do not have a significant effect on credit distribution due to funds collected by the bank exceeds the reference provided by the IDX so that the bank has funds that are not distributed. It can be said that the amount of CAR, DPK has no influence on credit distribution, while for NPL it has a significant negative effect, which means that if credit distribution increases, the bank will experience The increase in NPL or bad credit, this problem requires banks to limit the distribution of credit funds in order to reduce the level of losses faced by banks.