Abstract
This research aims to test the influence of Third-party Funds (DPK), Capital Adequacy Ratio (CAR), Operational Income Operating Costs (BOPO), Loan to Deposit Ratio (LDR), and Non-Performing Loan (NPL) on the Profitability (ROA) at Conventional Commercial Banks Books 3 which are listed on Financial Services Authority (OJK) 2014-2018 period. This research is using the purposive sampling technique to collect data population from financial reports Conventional Commercial Banks Books 3 which are listed on OJK 2014-2018 period with the number of samples used were 16 banks. The data were analyzed using panel data regression using the fixed effect model. Hypothesis testing uses F-test statistic, coefficient of determination test (), and t-test statistic. The results showed that simultaneously of the five independent variables studied, significant impact on ROA. And partially of the five independent variables studied, there are two independent variables that negative and significant influence on ROA namely BOPO and NPL. While three independent variables do not positive and do not significantly affect ROA namely DPK, CAR, and LDR. The Contribution of all independent variables is 89,7125% and the rest of the value 10,2875% can be explained by another variable outside this research model.
Highlights
The growing global economy causes the Indonesian economy to blend in with regional and international economies
This study was conducted with the aim of knowing whether Third Party Funds (TPF), Capital Adequacy Ratio (CAR), BOPO, Loan to Deposit Ratio (LDR) and Non-Performing Loan (NPL) can affect Return on Assets (ROA) of BUKU 3 Conventional Commercial Banks registered with OJK for the period 2014-2018
Based on the previous chapters that have been made, the following conclusions can be drawn: 1) The results show that Third Party Funds (TPF) have no positive and insignificant effect on Profitability (ROA) at BUKU 3 Conventional Commercial Banks registered with OJK for the 2014-2018 period
Summary
The growing global economy causes the Indonesian economy to blend in with regional and international economies. The development of the Indonesian economy cannot be separated from the important role of the banking industry. The financial and banking sectors of ASEAN countries will begin to be integrated in 2020, this integration is one of the agreements between ASEAN countries in the implementation of the ASEAN stump market, the ASEAN Economic Community (AEC) / ASEAN Economic Community (MEA). This integration allows banks with certain qualifications (Qualified ASEAN Banks) to be entitled to send their three banking institutions and is free to operate their business activities in the ASEAN region (Suharyadi and Sumarto, 2017).
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