The Effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Non-Performing Loan (NPL) Against Return on Asset (ROA) With Net Interest Margin (NIM) as an Intervening Variable in BUMN Bank Listed on the Indonesia Stock Exchange 2018-2022

Abstract

This study aims to determine the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Non- Performing Loan (NPL) in the Return on Asset (ROA) with Net Interest Margin (NIM) as an Intervening Variable in BUMN Bank Listed on the Indonesia Stock Exchange 2018-2022. The independent variable used in this study is Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Non-Performing Loan (NPL). The dependent variable used is Return On Asset (ROA). The intervening variable used is Net Interest Margin (NIM). The method used in this study uses nonprobability sampling technique, using secondary and quantitative data. The analysis technique in this research uses Smart PLS 3.0 by analysing the inner model such as the coefficient of determination, hypothesis testing and path analysing. The research show that, CAR has a significant and positive effect on NIM, LDR and NPL have no significant and unidirectional effect on NIM, CAR and LDR have no significant and unidirectional effect on ROA, NPL and NIM have a significant and unidirectional effect on ROA, NIM can mediate the influence of the variable CAR on ROA, NIM cannot mediate the influence of the LDR and NPL variables on ROA.