Proceedings of the International Conference on Management, Accounting, and Economy (ICMAE 2020)

The Effect of Non-Performing Loans on Profitability in Banking Sector in Indonesia

Authors
Catur Rahayu Martiningtiyas, Dewi Tirtarini Nitinegeri
Corresponding Author
Catur Rahayu Martiningtiyas
Available Online 15 September 2020.
DOI
https://doi.org/10.2991/aebmr.k.200915.016How to use a DOI?
Keywords
capital adequacy ratio, gross domestic product, liquidity ratio, non-performing loans, bank size, profitability
Abstract
The objective of this study is to analyze the effect of non-performing loans on bank profitability. The dependent variable in this study is profitability and the independent variable is non-performing loans by using control variables are liquidity ratio, capital adequacy ratio, gross domestic product and size. This study uses 26 conventional banks that are listed on Indonesian Stock Exchange in the period between 2009-2017 by using purposive sampling. The results of this study show that non-performing loans variable has a significant negative influence on profitability bank. Liquidity ratio and gross domestic product have significant positive influence on profitability bank whereas capital adequacy ratio does not have significant influence on profitability bank. Implications: For conventional banking firms they are expected to do monitoring so that the level of non-performing loans is low, monitoring the level of liquidity ratio, are also contributing in increasing the growth of gross domestic product to increase profitability bank.
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Proceedings
International Conference on Management, Accounting, and Economy (ICMAE 2020)
Part of series
Advances in Economics, Business and Management Research
Publication Date
15 September 2020
ISBN
978-94-6239-053-9
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.200915.016How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Catur Rahayu Martiningtiyas
AU  - Dewi Tirtarini Nitinegeri
PY  - 2020
DA  - 2020/09/15
TI  - The Effect of Non-Performing Loans on Profitability in Banking Sector in Indonesia
BT  - International Conference on Management, Accounting, and Economy (ICMAE 2020)
PB  - Atlantis Press
SP  - 64
EP  - 67
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200915.016
DO  - https://doi.org/10.2991/aebmr.k.200915.016
ID  - Martiningtiyas2020
ER  -