The Effect of CAR, LDR and ROA on NPL in Banking Companies Listed on the Indonesia Stock Exchange

Abstract

This study aims to examine the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and Return On Asset (ROA) on Non-Performing Loans (NPL) in banking companies listed on the Indonesia Stock Exchange in 2021-2023. The data used in the study was obtained from the Financial Statements published by the Indonesia Stock Exchange. The data analysis technique used is Multiple Liniear Regression Analysis with the help of SPSS V26 of 2024. With a population of 48 which were subsequently eliminated according to the criteria until there were 34 samples left with the following analysis results: Capital Adequacy Ratio (X1) had a significant effect on Non-Performing Loans with a significance of 0.000 < 0.05; Return On Asset had an effect on Non-Performing Loans with a significance of 0.035 < 0.05; Loan to Deposit Ratio had no significant effect on Non-Performing Loans with a significance of 0.058 > 0.05.