THE INFLUENCE OF MICRO AND MACRO ECONOMICS ON NON PERFORMING LOANS IN NATIONAL PRIVATE BANKING IN INDONESIA
THE INFLUENCE OF MICRO AND MACRO ECONOMICS ON NON PERFORMING LOANS IN NATIONAL PRIVATE BANKING IN INDONESIA

Summary/Abstract: THIS RESEARCH AIMS TO OBTAIN EMPIRICAL EVIDENCE OF THE INFLUENCE OF MICROMACROECONOMICS TOWARDS NON-PERFORMING LOANS IN NATIONAL PRIVATE BANKS IN INDONESIA. IN THIS RESEARCH USED THE PERIOD FROM 2017-2021. TYPE OF DATA USED IS SECONDARY DATA OBTAINED FROM NATIONAL PRIVATE BANKING FINANCIAL REPORTS. FOR CARRY OUT HYPOTHESIS TESTING USING A PANEL DATA MODEL, NAMELY BY LOOKING AT THE ASSUMPTIONS FOR SEE THE BEST MODEL FROM THE PANEL DATA. BASED ON THE RESULTS OF HYPOTHESIS TESTING, IT WAS FOUND THAT CAR HAS A NEGATIVE AND SIGNIFICANT EFFECT ON THE NPL OF NATIONAL PRIVATE BANKS, FDR/LDR HAS A NEGATIVE AND INSIGNIFICANT EFFECT ON THE NPL OF NATIONAL PRIVATE BANKS, INFLATION HAS A POSITIVE AND SIGNIFICANT EFFECT ON THE NPL OF NATIONAL PRIVATE BANKING AND THE EXCHANGE RATE POSITIVE AND INSIGNIFICANT EFFECT ON NATIONAL PRIVATE BANKING NPL, GDP INSIGNIFICANT POSITIVE EFFECT ON NATIONAL PRIVATE BANKING NPL. IT RECOMMEND THE BANKS TO BE MORE CAREFUL IN PROVIDING FUNDS IN FORM CREDIT, OR CURRENT ACCOUNTS, SINCE THE FDR/LDR FROM PRIVATE BANKS IS SMALL IN THE SAMPLE TAKEN IN EXCESS OF THE LIMIT SET BY BANK INDONESIA, THUS IMPACT ON INCREASING THE PERCENTAGE OF BAD LOANS AT BANKS.

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