Abstract

This study aims to determine and analyze the effect of Non Performing Loan and Loan to Deposit Ratio on Return on Assets through Capital Adequacy Ratio in banking listed in Indonesia Stock Exchange period 2014-2018. The criteria for sampling in this study are banks listed on the Indonesia Stock Exchange which publish bank annual financial reports for 2014-2018 as many as 80. Data analysis in this study used Partial Least Square with the WarpPLS 6.0 program. The results showed thatNon Performing Loan has a negative and significant effect on the Bank's Capital Adequacy Ratio, Loan to Deposit Ratio has a negative and significant effect on the Bank's Capital Adequacy Ratio, Non Performing Loan has a negative and significant effect on BankÔÇÖs Return on Assets, Loan to Deposit Ratio has no effect on BankÔÇÖs Return on Assets, Capital Adequacy Ratio has a positive and significant effect on BankÔÇÖs Return on Assets, Non Performing Loan has no effect on Return on Assets through the Bank's Capital Adequacy Ratio, Loan to Deposit Ratio has no effect on the Return on Assets through the Bank's Capital Adequacy Ratio.Keywords: non performing loan, loan to deposit ratio, capital adequacy ratio, return on asset.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.