Analysis of The Effect of Loan Distribution, Non-Performing Loans, and Loan at Risk on The Allowance For Impairment Losses at PT Bank Sumut Conventional Unit

Abstract

Loan Distribution is one of the bank's activities that can contribute to profit. However, the activity presents credit risks, which can be measured by the bank's Non-Performing Loans (NPL) and Loans at Risk (LaR). One of the bank's efforts to mitigate this credit risk is establishing an Allowance for Impairment Loss (CKPN). This study aims to analyze the effect of Loan Distribution, NPL, and LaR on CKPN at PT Bank Sumut Conventional Unit from 2022 to 2024. The data used in this study is secondary data obtained from PT Bank Sumut's annual financial reports, which are available on the bank's official website, and monthly reports retrieved from the bank's internal reporting application. The data was collected using a non-participatory observation technique. This involved gathering the complete monthly data for the variables under study from 2022 to 2024. The validity of the collected data was first examined using the Classical Assumption tests, which comprise the Autocorrelation, Heteroscedasticity, Multicollinearity, and Normality tests. Multiple Regression Analysis was used to examine the data. The Coefficient of Determination (R Square) test, the Simultaneous test (F test), and the Partial test (t-test) were used to test the hypotheses. The analysis results showed that the Loan Distribution and NPL variables have an impact on CKPN. Meanwhile, the LaR variable does not affect the CKPN at PT Bank Sumut Conventional Unit from 2022 to 2024.