FACTORS AFFECTING PROFITABILITY WITH THE INTEREST RATE AS MODERATING VARIABLES IN BANK SUMUT
Keywords:NPL, LDR, BOPO, NIM, CASA, ROA
The purpose of this study is to examine the effect of the Non-Performing Loan (NPL), Loan to Deposit Ratio (LDR), Operational efficiency (BOPO), Net Interest Margin (NIM), and Current Account Saving Account (CASA) partially and simultaneously to PT. Bank Sumut profitability with Bank Indonesia (BI) Rates as a moderating variable. The population of this research is the branch office of PT. Bank Sumut which has been established during the observation period from 2014 to 2018. This study uses purposive sampling. The analytical tool used is panel data regression and data processing using software Stata 13. The results of this test show that the NPL and LDR ratios have a negative effect on ROA, while the BOPO, NIM, and CASA ratios have a positive effect on ROA. BI Rates cannot moderate the relationship between the ratio of NPL, LDR, BOPO, NIM, and CASA on ROA in PT. Bank Sumut.
How to Cite
The authors who publish in International Journal of Public Budgeting, Accounting and Finance (IJPBAF) agree to the following terms:
- This journal provides immediate open access to its content. All the articles are licensed under a Creative Commons Attribution 4.0
- Authors grant the journal right of (a) first publication and distribution of the article, (b) making it available to public, (c) public presentation.
- Authors have the right to enter into separate contractual arrangements for posting the article to an institutional repository or publish it in a book with an acknowledgement of its initial publication in this journal.
- Authors are permitted to post citations from their work online (e.g. on their website) with an acknowledgement of its initial publication in this journal.