Do Macroeconomics and Bank-Specific Factors Influence Non-Performing Loans?

Putri Setia Mardiani; Umi Muawanah; Oyong Lisa

doi:10.37034/infeb.v8i3.1496

Do Macroeconomics and Bank-Specific Factors Influence Non-Performing Loans?

Putri Setia Mardiani Universitas Gajayana Malang Umi Muawanah Universitas Gajayana Malang Oyong Lisa Universitas Gajayana Malang DOI: https://doi.org/10.37034/infeb.v8i3.1496 Keywords: Non-Performing Loans, Inflation, Gross Domestic Product, Loan to Deposit Ratio, Bank Size Abstract This study aims to analyze the effects of inflation, Gross Domestic Product, Loan to Deposit Ratio, and bank size on the NPLs of Conventional Rural Banks in Central Java, both individually and simultaneously. This research employed a quantitative approach with a descriptive research design. The sample consisted of 69 Conventional BPRs in Central Java selected through purposive sampling. Secondary data were collected from BPR published financial reports, the Financial Services Authority, Statistics Indonesia, and the official websites of the respective BPRs. Panel data regression analysis was conducted using E-Views 13, preceded by classical assumption tests, including normality, heteroscedasticity, multicollinearity, and autocorrelation tests. The results indicate that inflation, LDR, and bank size have negative but statistically insignificant effects on NPLs, while GDP has a positive and statistically significant effect on NPLs. These findings suggest that during the observation period Q4, stable inflation, liquidity management, and bank size were not the primary determinants of changes in NPLs. In contrast, higher GDP was associated with an increase in NPLs, indicating that stronger economic growth may have encouraged more aggressive lending activities, thereby increasing credit risk. Simultaneously, inflation, GDP, LDR, and bank size were found to have a significant effect on NPLs in Conventional Rural Banks in Central Java. Downloads Download data is not yet available. 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Jurnal Informatika Ekonomi Bisnis, 8(3), 674-679. https://doi.org/10.37034/infeb.v8i3.1496 ACM ACS APA ABNT Chicago Harvard IEEE MLA Turabian Vancouver Download Citation Endnote/Zotero/Mendeley (RIS) BibTeX This work is licensed under a Creative Commons Attribution 4.0 International License.