What Most Influence on Non Performing Loan in Indonesia? Bank Accounting Perspective with MARS Analysis
The research objective is to examine the effect of growth in gross domestic product, interest rates, currency exchange rates, exports, credit growth, inflation, asset returns, operating costs to operating income and the ratio of capital adequacy to non-performing loans at national private commercial banks in Indonesia. The population used in this study is banking companies listed on the Indonesia Stock Exchange. Data analysis techniques using Multivariate adaptive regression spline (MARS). The results of the study inform that there is an influence between the predictor variables and the response variables on the basis of functions in the model. The variables that affect bad credit are the variables that affect NPLs are credit growth, exchange rates, export growth, CAR, ROA, BOPO and interest rates, while GDP growth and inflation in this study do not affect NPLs in conventional banks in the private bank group national. The MARS model has informed that the most influential variable on non-performing loans is credit growth. Banking authorities need to control lending through the application of credit risk management and regulating the quality of credit loans to be the contribution of the results in this study.
Akinlo, O. (2014). Determinants of NPL in Nigeria. Accounting and Taxation, 6(2).
Ali, M. (2016). Bank profitability and its determinants in pakistan: A panel data analysis after finacial crisis. Journal of Finance and Economic, 1(1), 3-16.
Almazari, A. A. (2014). Impact of internal factors on bank profitability : Comparative study between saudi arabia and jordan. Journal of Applied Finance & Banking, 4(1), 125-140.
Ari, M. G. (2016). Pengaruh Makroekonomi Terhadap Non Performing Loan Perbankan. Jurnal Ekonomi & Kebijakan Publik, 7(2), 159-170.
Badar, M., & Javid, A. (2013). Impact of Macroeconomic Forces on Nonperforming Loans: An Empirical Study of Commercial Banks in Pakistan. WSEAS Transactions on Business and Economics, 10(1), 40-48.
Barus, A. C., & Erik. (2016). Analysis of Factors Affecting Non Performing Loans at Commercial Banks in Indonesia. JWEM (Jurnal Wira Ekonomi Mikroskil), 6(2), 113-122.
Bofondi., & Ropele. (2011). Macroeconomic determinants of bad loans: evidence from Italian banks. Questioni di Economia e Finanza, 89(1), 11-41.
Bonilla, C. A. (2012). Macroeconomic Determinants of the Non-Performing Loans in Spain and Italy. Dissertation Working Paper Department of Economics, University of Leiceste.
Curak, M., Pepur, S., & Poposki, K. (2013). Determinants of Non-performing Loans Evidence from Southeastern European Banking System. Banks and Bank Systems, 8(1).
Dewi, K. P., & Ramantha, I. W. (2015). Effect of Loan Deposit Ratio, SBI Interest Rate, and Bank Size against Non Performing Loan. E-Jurnal Akuntansi Universitas Udayana, 11(3), 909-920.
Diansyah. (2016). Influence of Internal and External Factors to Non Performing Loan (Study on Banks listed on Indonesia Stock Exchange Period 2010-2014). Journal of Business Studies, 2(1), 1-13.
Dimitrova, P. (2013). Some Aspect of The Accounting Analysis of Loan Granted by Commercial Banks. Economic Archive, 66(2), 54-66.
Eng, T. S. (2013). Pengaruh NIM, BOPO, LDR, NPL, & CAR terhadap ROA bank internasional dan bank nasional go public periode 2007-2011. Jurnal Dinamika Manajemen, 1(3), 153-167.
Fitriyanti, A. N., , . (2016). Analysis of the Influence of GDP Growth, Inflation, BI Rate, and Exchange Rate on Non Performing Loans in Conventional and Sharia Banks. Jurnal Ilmiah. University of Brawijaya. Malang.
Friedman, J. H. (1991). Multivariate Adaptive Rgression Splines. The Annals of Statistics, 19(1), 1-67.
Idris, I. T., & Nayan, S. (2016). The Joint Effects of Oil Price Volatility and Environmental Risks on Non-performing Loans: Evidence from Panel Data of Organization of the Petroleum Exporting Countries. Jurnal Manajemen, 2(3).
Johannes, W. (2014). Bank Management and Control; Strategy, Capital and Risk Management. Berlin Heidelberg: Springer.
Jusmansyah, M., & Sriyanto, A. (2013). Analysis of CAR, BOPO and ROA effects against Non Performance Loans. Jurnal Akuntansi dan Keuangan, 2(1), 46-65.
Kasmir. (2014). Manajemen Perbankan. . Jakarta: Rajawali Pers.
Khaled, S. (2016). Determinants of Non-Performing Loans: Evidence from the Jordanian Banking Sector. Journal of Finance and Bank Management, 4(1), 125-136.
Kristiani, N., & Sri, M. R. (2018). Pengaruh GDP, Inflasi, BI Rate, Nilai Tukar Terhadap Non Performing Loan Bank Umum Konvensional di Indonesia. Jurnal Administrasi Bisnis (JAB), 62(2), 12-28.
Messai, A. S., & Fathi, J. (2013). Micro and Macro Determinants of Non-performing Loans. Journal of Economics, 3(4), 852-860.
Muthia, R. L. (2015). Influence Inflation, Exchange Rate and Rate of Non Performing Loan At PT. State Savings Bank (Persero) Tbk Padang Branch. Economica Journal Of Economic And Economic Education, 3(2), 137-145.
Ossamah, M. A. (2017). The Impact of Oil Price Movements on Bank Non-Performing Loans: Global Evidence From Oil-Exporting Countries. Emerging Market Review, 3(1), 193-208.
Saba, I. R., Kouser., & Muhammad, A. (2012). Determinants of Non Performing Loans: Case of US Banking Sector. Journal of Economics, 14(44), 14-29.
Suryani, A., Suhadak., & Raden, R. H. (2016). Pengaruh rasio capital adequacy ratio, biaya operasional per pendapatan operasional, loan to deposit ratio, net interest margin, dan non performing loan terhadap return on asset. Jurnal Administrasi Bisnis (JAB), 33(1), 105-113.
Utari, G. A., Trinil, A., & Ina, N. K. (2012). Optimal Credit Growth. Economic and Banking Bulletin, Bank Indonesia, 1(1).
Warue, B. N. (2013). The Effects of Bank Specific and Macroeconomic Factors on Nonperforming Loans in Commercial Banks in Kenya: A Comparative Panel Data Analysis. Advances in Management & Applied Economics, 3(2), 135-164.
Weidong, T. (2017). Commercial Banking Risk Management: Regulation in the Wake of the Financial Crisis. . US.: Palgrave Macmillan.
Wooldridge, J. M. (2013). Introductory Econometrics: A Modern Approach: South-Western Cengage Learning.
Yahaya, K. A., & Oni, O. (2016). Impact of Macro economic Factors on Non Performing Loan in the Nigerian Deposit Money Bank. Amity Global Business Review, 11(1), 68-78.
Yesica, Y. A., & Irene, R. (2015). The Effect of Gross Domestic Bruto, Rate, Export, Credit Growth And Operating Expenses and Operating Income to Non Performing Loan in Indonesia. Diponegoro Journal of Management, 4(3), 1-12.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.