Determinants Of Financial Performance In People's Credit Banks In Bali Province
DOI:
https://doi.org/10.38142/jebd.v2i2.150Keywords:
Loan To Deposit Ratio, Operating Costs Operating Income, Non Performing Loans, Capital Adequacy Ratio, Net Interest MarginAbstract
Purpose:
This research aims to determine and analyze the influence of the Loan Deposit Ratio, operating costs, operating income, Non-Performing Loans, Capital Adequacy Ratio and Net Interest Margin on the financial performance of BPRs in Bali Province in 2019-2022.
Methodology:
This research is quantitative descriptive. This research was conducted at all Rural Banks in Bali Province by analyzing the Determinants of Financial Performance at Rural Banks in Bali Province from November 2023 to January 2024. The scope of the research is to determine the factors that influence Financial Performance at Rural Banks in Bali Province. The population in this research is all Rural Banks in Bali Province in 2019-2022, totaling 135 Rural Banks. Sampling in this research used the purposive sampling method.
Findings:
The calculations show that the total research sample was 133 Rural Banks in Bali Province, with four years of observation totaling 532 data. The analysis technique used is multiple linear regression analysis. The research results show that the Loan to Deposit Ratio (LDR) positively affects Return on Assets (ROA).
Implication:
Operating Costs Operating Income (BOPO) hurts Return on Assets (ROA). Non-performing loans (NPL) hurt Return on Assets (ROA). Capital Adequacy Ratio (CAR) positively affects Return on Assets (ROA). Net Interest Margin (NIM) has a negative effect on Return on Assets (ROA).
Downloads
References
Aprilia, J., & Handayani, S. R. (2018). Influence Capital Adequacy Ratio, Operating Costs Per Operating Income, Non-Performing Loan, and Loan to Deposit Ratio to Return on Asset and Return on Equity (Study of National Private Commercial Banks with Foreign Exchange Year 2012–2016). Journal of Business Administration (JAB), 61(3), 172-182.
Binu, R. R., & Agustian, W. (2023, July). Financial Performance Analysis of Investor Confidence During the Covid-19 Pandemic at Pt. Bank Mandiri Tbk. InProceedings of the Seminar on Vocational Research Results (Semhavok) (Vol. 5, No. 1, pp. 49-58).
Brigham & Houston. (2014). Essentials of Financial Management. Basics of Financial Management. Translated by Ali Akbar Yulianto. Book 2. Edition 11. Jakarta: Salemba Empat. https://doi.org/10.2307/3664983
Dao, B. T. T. & Nguyen, K. A. (2020). Bank Capital Adequacy Ratio and Bank Performance in Vietnam: A Simultaneous Equations Framework. Journal of Asia Finance, Economics and Business Flight. 7 No. 6 (2020). https://doi.org/10.13106/jafeb.2020.vol7.no6.039
Dendawijaya, L. (2014). Banking Management (Third). Jakarta: Ghalia Indonesia.
Dewi, H. K. (2020). Banking Nim Dropped During the Corona Pandemic, Turns Out This Was the Trigger.” Available at https://Keuangan.Kontan.Co.Id/News/Nim-Perbankan-Melorot-current-Pandemi-Corona-Ternyata-Ini-Trigger. Accessed March 24, 2023
Fahmi, I. (2011). Financial Performance Analysis. Bandung: Alphabeta,
Fahrial, F. (2018). The Role of Banks in National Economic Development. Encyclopedia of Journals, 1(1).
Fajri, F., & Mariadi, Y. (2022). The Influence of Good Corporate Governance on the Financial Performance of State-Owned Companies in the Financial Sector. Accounting Student Research Journal, 2(2), 307-320.
Fajri, G. R. (2017). The Impact of The Financial Ratios as the Measurement Upon the Performance of Return on Assets at the Public Banks in Indonesia (The Empiric Study Upon the Banking Companies Registered at Bei in 2012-2015). The Accounting Journal of Binaniaga, 2(01), 39–50. https://doi.org/10.33062/ajb.v3i1.176
Febriandika, I. (2023). Analysis of the Training and Development Model of MSME Employees Ilbis Yogyakarta Using the MPPK 0.1 Test Tool. Journal of Entrepreneurial and Business Diversity, 1(3), 186-189. https://doi.org/10.38142/jebd.v1i3.115
Financial Services Authority. (2022, October). Sharia Banking Statistics. Retrieved January 22, 2023, From Bei: Www.Ojk.Go.Id
Frianto, P. (2014). Fund Management and Bank Health. Jakarta: Rineka Cipta.
Ghozali, I & Ratmono, D. (2018). Multivariate Analysis and Econometrics: Theory, Concepts and Applications with Eviews 10. Semarang: Undip.
Handayani, E. F. (2014). The Effect of Non-Performing Loans on Profitability and Liquidity Levels in the Banking Industry Listed on the Indonesian Stock Exchange. Journal of Accounting and Finance, 19(1), 105.
Harahap, S. D. (Ed.). (2015). Crisis Analysis of Financial Reports (1st–10th Ed.). Jakarta: Rajawali Press.
Harun, U. (2016). The influence of CAR, LDR, NIM, BOPO, and NPL Financial Ratios on ROA. Journal of Business and Management Research, 4(1), 67–82.
Hasibuan, M. (2017). Human Resource Management. Jakarta: Bumi Literacy.
Hidayat, R., Lubis, F. R. A., & Salim, A. (2022). Analysis of NIM, BOPO, NPL and LDR Ratios on ROA of Bank Rakyat Indonesia 2009-2020. Simki Economic Journal, 5(1), 39-49. https://doi.org/10.29407/jse.v5i1.130
Indonesian Bankers Association. (2016). Risk Management Governance. Jakarta: Gramedia Pustaka Utama.
Indonesia, I. B. (2016). Bank Risk Management Strategy. Kencana.
Inten. A. P. (2018). The Influence of Islamic Corporate Social Responsibility, Environmental Performance, and Financial Performance on Company Value (In Companies Listed on the Jakarta Islamic Index for the 2012-2016 Period). Thesis (S1) Thesis, Library of the Faculty of Economics and Business, Unpas Bandung
Iqbal, M. (2021). Influence Capital Adequacy Ratio (Car), Non-Performing Financing (NPF), Financing to Deposit Ratio (Fdr), Operational Efficiency Ratio (Oer), and Profit Sharing Ratio (Psr) on Profitability (Case Study of Sharia Commercial Banks for the 2016-2020 Period). Thesis. Iansalatiga University
Ismail. (2018). Banking Management: From Theory to Application. Jakarta: Prenadamedia Group.
Istinfarani, S., & Azmi, F. (2020). Determining Factors of Banking Performance Efficiency Levels. Journal of Accounting and Tax, 20(2), 230-240. https://doi.org/10.29040/jap.v20i2.800
Khamisah, N., Nani, D. A., & Ashsifa, I. (2020). Influence Non-Performing Loan (NPL), BOPO and Company Size Against Return on Assets (ROA) Banking Companies Listed on the Indonesia Stock Exchange (BEI). TECHNOBIZ: International Journal of Business, 3(2), 18-23. https://doi.org/10.33365/tb.v3i2.836
Khoiriyah, S., & Dailibas, D. (2022). The Influence of NPL and LDR on Profitability (ROA). Competitive Journal of Accounting and Finance, 6(1), 138-144.
Korompis, R. R., Murni, S., & Untu, V. N. (2020). The Influence of Market Risk (Nim), Credit Risk (Npl), and Liquidity Risk (Ldr) on Banking Financial Performance (Roa) in Banks Registered on Lq 45 for the 2012-2018 Period. Jurnal Emba: Journal of Economic, Management, Business and Accounting Research, 8(1).
Kusmayadi, D. (2018). Analysis of the Effect of Capital Adequacy Ratio, Loan to Deposit Ratio, Non-Performing Loan, Bopo, and Size on Return on Assets in Rural Banks in Indonesia. Saudi Journal of Business and Management Studies (SJBMS) ISSN 2415-6663 (Print).
Latumaerissa, J. R. (2014). Commercial Bank Management (Original). Media Discourse Partners.
Lubis, I. L., Sinaga, B. M., & Sasongko, H. (2017). The Influence of Profitability, Capital Structure, and Liquidity on Company Value. Journal of Business and Management Applications (Jabm), 3(3), 458-458.
Mahadewi, D. P. (2022). Determinants of Financial Performance of Conventional BPRs in Balance with Credit Risk and Company Size as Moderating (Doctoral Dissertation, Ganesha University of Education).
Mahardian, P., Mahfudz, M. K., & Hadiprajitno, P. T. B. (2008). Analysis of the Influence of CAR, BOPO, NPL, NIM and LDR Ratios on Banking Financial Performance (Case Study of Banking Companies Listed on the Bej for the Period June 2002–June 2007) (Doctoral Dissertation, Undip: Faculty of Economics and Business).
Maria, A. (2015). The Influence of CAR, BOPO, NIM, NPL and LDR on ROA: Case Study of the 10 Best Banks in Indonesia. University of Surabaya Student Scientific Journal, 4(1), 1–19.
Maroni, M., & Simamora, S. C. (2020). The Influence of NPL, LDR and BOPO on Roe at PT. Bank Mandiri (Persero) Tbk for the 2011-2019 period. Innovative Journal of Management Students, 1(1), 67-81.
Martiningtiyas, C. R., & Nitinegeri, D. T. (2020, September). The Effect of Non-Performing Loans on Profitability in Banking Sector in Indonesia. In International Conference on Management, Accounting, and Economy (Icmae, 2020) (Pp. 64-67). Atlantis Press. https://doi.org/10.2991/aebmr.k.200915.016
Muhtarom, U. (2018). The Influence of CAR, NIM, LDR, NPL, and BOPO on Banking Financial Performance (Empirical Study of Banking Sector Companies Listed on the Indonesian Stock Exchange for the 2014–2016 Period) (Doctoral Dissertation, Mercu Buana University Yogyakarta).
Munir, A. S. (2017). Analysis of Factors That Influence the Financial Performance of Sharia Banking in Indonesia. Ummul Qura Journal of the Sunan Drajat Islamic Boarding School Institute (Insud) Lamongan, 9(1), 56-68.
Ningsih, S., & Dewi, M. W. (2020). Analysis of the Effect of NPL, BOPO and CAR Ratios on Financial Performance in Conventional Commercial Banks Registered on BEI. Journal of Accounting and Tax, 21(1), 71-78. https://doi.org/10.29040/jap.v21i1.1159
Nuha, M. U. Hidayah, H., Yusroni, N., (2023). The Influence of Cost of Loanable Funds, Overhead Costs, Risk Factors and Third-Party Funds (DPK) on Murabahah Margins in Sharia Commercial Banks in Indonesia. Scientific Journal Focusing on Economics, Management, Business & Accounting (Emba), 2(02), 236-244.
Nur, A. P., & Woestho, C. (2022). Financial Performance Analysis Based on Financial Ratios Before and During the Covid-19 Pandemic. STIE Muhammadiyah Palopo Development Economics Journal, 8(1), 28-51. https://doi.org/10.35906/jep.v8i1.1003
Padmayanti, N. P. E. W., Suryandari, N. N. A., & Munidewi, I. B. (2019). The Influence of Financial Performance on Company Value with an Independent Board of Commissioners as a moderating variable in Manufacturing Companies Listed on the Indonesian Stock Exchange. Journal of Accounting Research, 9(1). http://Weekly.Cnbnews.Com/News/Article.Html?No=124000
Paisley. (2018). Financial Report Analysis. Jakarta: Pt. Raja Grafindo Persada.
Paisley. (2019). Introduction to Financial Management: Second Edition. East Jakarta: Prenada Media.
Pinasti, W. F., & Mustikawati, R. I. (2018). The influence of CAR, BOPO, NPL, NIM and LDR on commercial bank profitability for 2011-2015. Nominal: Barometer of Accounting and Management Research, 7(1), 126-142. https://doi.org/10.21831/nominal.v7i1.19365
Prasanjaya, A. A Yogi & I Wayan R. (2018). Analysis of the Influence of Car, Bopo, Ldr Ratios, and Company Size on the Profitability of Banks Registered on BEI. Udayana University Accounting E-Journal 4.1
Prasetyo, H. H., & Yushita, A. N. (2019). The Influence of CAR, BOPO, LDR and NPL on the Financial Performance of Rural Banks in Diy Province for the 2015-2016 Period. Profita Journal: Study of Accounting Science, 7(2).
Pratama, M. I. Y., & Yushita, A. N. (2021). The Influence of CAR, LDR, BOPO, NPL, and NIM on the Financial Performance of Banks Listed on the Indonesian Stock Exchange for the 2015-2018 Period. Profita Journal: Study of Accounting Science, 9(8), 70-84.
Putri, E., & Dharma, A. B. (2016). Analysis of Differences in Financial Performance Between Conventional Banks and Sharia Banks. Indonesian Accounting and Finance Research, 1(2), 98-107.
Ramadanti, F., & Setyowati, E. (2022). The Influence of NPL, LDR, BOPO and Nim on Roa at PT. Bank Mandiri (Persero) Tbk 2013-2021. Ekombis Review: Scientific Journal of Economics and Business, 10(2), 695-706. https://doi.org/10.37676/ekombis.v10i2.2170
Riyadi, S. (2015). Banking Assets and Liability Management, Publishing Institution, Faculty of Economics, University of Indonesia.
Sabir M., Muhammad M., & Hamid. (2022). The Influence of Bank Health Ratios on the Financial Performance of Sharia Commercial Banks and Conventional Banks in Indonesia. Journal of Economics and Business, Vol 1 No.1. Hasanuddin University Makasar.
Saputra, A. A. H. (2019). The Relationship between Intellectual Capital and Company Performance. Journal of Accounting and Auditing, 16(2), 60-88. https://doi.org/10.14710/jaa.16.2.60-88
Sartono, A. R. (2017). Financial Management Theory and Applications. Yogyakarta: Bpfe
Setiadi, P. B. (2020). The Influence of LDR, LAR, DER and CAR on Roa. Bisma E-Journal, Ganesha Education University, Management Department. Volume 3 2020
Setiawanta, Y., & Hakim, M. A. (2019). Are Financial Performance Signals Still Confirmed? Empirical Study of Financial Institutions at PT. Bei. Journal of Economics and Business, 22(2), 289-312. https://doi.org/10.24914/jeb.v22i2.2048
Siegel Joel G. & Joek S. (2016). Dictionary of Accounting Terms. Jakarta: Pt. Elex Komputindo,
Siringoringo, R. (2017). Analysis of the Intermediation Function of Indonesian Banking (Case Study of Conventional Commercial Banks Listed in BEI for the 2012-2016 Period). Journal of Business and Management Inspiration, 1(2), 135-144.
Sorongan, F. A. (2020). Influence of Profitability, Non-Performing Loan (Npl), Liquidity and Inflation Against Capital Adequacy Ratio (Car) (In Regional Development Banks for the 2016-2019 Period). Jrmsi - Indonesian Science Management Research Journal, 11(2), 224–243. https://doi.org/10.21009/JRMSI.011.2.02
Sudarmawanti, E., & Pramono, J. (2017). The Influence of CAR, NPL, BOPO, NIM and LDR on Roa (Case Study of Rural Credit Banks in Salatiga, Registered with the Financial Services Authority in 2011-2015). Among Makarti, 10(1). https://doi.org/10.52353/ama.v10i1.143
Sudirman, I. W. (2013). Banking Management Towards Professional Conventional Bankers. First Edition. Jakarta: Kencana Prenada Media Group.
Sugiyono. (2019). Quantitative Research Methods. Qualitative And R&D. Bandung: Alphabeta.
Sujarweni, V. W. (2017). Analysis of Theory Financial Reports, Applications and Research Results. Yogyakarta: Pustaka Baru Press.
Sumartik., & Misti H. (2018). Banking Management Textbook. Sidoarjo: Umsida Press.
Sunaryo, B. A., & Mahfud, M. K. (2016). The Influence of Size, Profitability Leverage and Age on Disclosure of Corporate Social Responsibility (Empirical Study of Manufacturing Companies Listed on BEI in 2010–2013). Diponegoro Journal of Management, 5(2), 537-550.
Surya, Y. A., & Asiyah, B. N. (2020). Comparative Analysis of the Financial Performance of Bank BNI Syariah and Bank Syariah Mandiri During the Covid-19 Pandemic. Iqtishadia Journal of Sharia Economics & Banking, 7(2), 170-187. https://doi.org/10.19105/iqtishadia.v7i2.3672
Suta, I. W. P., & Dwiastuti, G. A. S. A. (2017). Performance Measurement Using the Balanced Scorecard Approach at the Head Office of PT Regional Development Bank Bali. Journal of Business and Entrepreneurship, 12(March 1), 32.
Taswan. (2020). Banking Management, Technical Concepts & Applications + Banking Risk Assessment. Yogyakarta: UPP STIM YKPN. Available From Googlebook
Titin, T. H. (2016). The Influence of Operational Costs and Operational Income (Bopo) on the Profitability of Sharia Banks in Indonesia. I-Finance: A Research Journal on Islamic Finance, 2(1), 20–34.
Vanni, K. M. (2017). Analysis of Factors that Influence Non-Performing Financing in Sharia Banking in Indonesia 2011 - 2016. Journal of Sharia Economics, Vol 5, No.
Wahyuni, S. (2015). Disclosure Of Islamic Corporate Social Responsibility and Financial Performance on Islamic Banking in Indonesia Yasmin Umar Assegaf Falikhatun and Financial Inclusion (Iciefi), 23, 42.
Wibowo, L. E., & Febriani, N. (2023). Implementation of Agency Theory, Market Efficiency, Signal Theory and Contract Theory in Accounting Reporting at Pt. Eskimo Wieraperdana. Researchgate. Net.
Wid. (2021). BPR Able to Survive Amid the Pandemic. Available at http://Bisnisbali.Com/Bpr-Mampu-Berlahan-Di-Ttengah-Pandemi/ Accessed March 24 2023
Yulianti, E., Aliamin, A., & Ibrahim, R. (2018). The Effect of Capital Adequacy and Bank Size on Non-Performing Loans in Indonesian Public Banks. Journal of Accounting Research, Organization and Economics, 1(2), 205-214. https://doi.org/10.24815/jaroe.v1i2.11709
Zarkasyi. (2018). Islamic Boarding School Management: The Modern Pondok Experience, Jakarta: Raja Grafindo
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Putu Mas MARTINIASIH, Christimulia Purnama TRIMURTI, Yeyen KOMALASARI, Gusti Ngurah Joko ADINEGARA
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Creative Commons Attribution-NonCommercial 4.0 International License.
