Abstract
This study aims to analyze the effect of macroeconomic and internal bank variables on NPL (Non-Performing Loans) in Non-Foreign Exchange Private Banks. This study uses secondary data obtained through the official FSA covering 18 small Banks in Indonesia. We apply annual data from 2016 to 2021 and use multiple linear regression techniques. The main factors that influence NPL are internal bank or company management factors, while external factors (macro variables) do not affect NPL in this study, namely, factors caused by economic conditions such as inflation and interest rates.In general, the results show that macro economic variables hasno significant effect on NPL. However, internal bank data such as Bank Size and CAR have a significant negative effect on NP. LDR has no significant positive effect on NPL and efficiency (BOPO) has a significant positive effect against NPL.
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