Abstract
This study was to determine the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and Non-Performing Loans (NPL) to the lending of Micro, Small and Medium Enterprises (MSMEs). The object of this research is commercial banks listed on the IDX in the 2014-2017 period. This research was conducted on 124 public banks listed on the IDX at the vulnerable time 2014-2017 using a quantitative descriptive approach. Therefore the data analysis used is statistical analysis in the form of multiple linear regression tests. The results of this study indicate that partially and simultaneously the variable CAR, LDR and NPL have an effect on MSME lending to commercial banks listed on the IDX in the 2014-2017 period. This is evidenced from the results of the simultaneous test (F test) and the partial test results (t test) also show significant values of the three independent variables that support the hypothesis. Therefore the results of the test from this study state that there is a simultaneous influence between the CAR, LDR and NPL variables on MSME lending to commercial banks found on the IDX in the 2014-2017 period. Keywords : Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loans (NPL), MSMEs, credit DOI : 10.7176/JRDM/61-07 Publication date: November 30 th 2019
Highlights
MSMEs (Micro, Small and Medium Enterprises) are business groups which often use their resources from the agriculture, plantation, livestock and trade sectors
RESEARCH METHODS Time and Place of Research the study was conducted in Indonesia with data obtained from the Financial Services Authority accessed from www.ojk.go.id, and from Bank Indonesia accessed from www.bi.go.id, financial report data for commercial banks registered with Indonesian securities from the period 2014 - 2017 accessed from March to June 2017
Based on research and discussion, the conclusions of this study are: 1. The results of the t test show that the Capital Adequacy Ratio (CAR) does not significantly influence the amount of MSME Credit Distribution in Indonesian banks listed on the Indonesia Stock Exchange in 2014-2017 2
Summary
MSMEs (Micro, Small and Medium Enterprises) are business groups which often use their resources from the agriculture, plantation, livestock and trade sectors. This MSME is a business group that has advantages in terms of the absorption of its large workforce, so that it can help the equity process which is part of the country's economic development (Anggraini and Hakim, 2013). The high CAR indicates the better the ability of the bank to bear the risk of any risky credit / productive assets. A high CAR indicates that a bank has a large capital, the higher the CAR the greater the credit disbursed. A low CAR indicates that banks do not have sufficient capital for lending. A low CAR indicates that banks do not have sufficient capital for lending. (Agus Murdiyanto, 2014)
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