Analysis Of Factors Affecting Bank Lending Policy

Abstract

This study aims to determine the effect of Third Party Funds, Capital Adequacy Ratio, Non Performing Loan, and BI Rate on Banking Credit Distribution. This study uses secondary data. The Research Objects in this study are 10 commercial banks in Indonesia with research years ranging from 2018-2022 and the research method used is the panel data analysis method with a total of 10 commercial banks in Indonesia. The research method used is the panel data analysis method with a total of 50 data. Hypothesis testing is done using the coefficient of determination (R2) test, Simultaneous Significance Test (F test), and Partial Test (t test). The results of this study indicate that simultaneously, Third Party Funds, Capital Adequacy Ratio, Non Performing Loan, BI Rate have a significant effect on bank lending. Partially, Third Party Funds has a positive and significant effect on bank lending, Capital Adequacy Ratio (CAR) has a negative and significant effect on Banking Lending. Non Performing Loan (NPL) has a negative and significant effect to Banking Lending, BI Rate has a positive and significant effect on Banking Lending. The value of the Coefficient of Determination (R2) in This study amounted to 92.52%, and the remaining 7.48% was the influence of other factors not examined in this study.