The Influence of Internal and External Factors on Bank Lending

Researchers World : Journal of Arts, Science and Commerce, 2017

This study aims to examine the influence of the internal and external factor (inflation, Product domestic bruto, the size, and the Non Performing Loan) on financial performance for 3 years during the period 2012-2014.This study uses secondary data which includes 24 companies listed in Indonesia Stock Exchange in 2012 to 2014 by using purposive sampling. Data were analyzed using multiple linear regressions to test the effect of independent variables on the dependent variable.The results showed that not all of the variables had significant effect. Inflation and PDB have a no significant effect. Sizes have a positive effect and significant on financial performance. NPL have a negative effect and significant on financial performance. Recomendation for bank should pay attention on their lending because NPL affects financial performance. For general society, the size and NPL should be paid attention for the funds kept safe. For further research, independent variables can be added and use different proxy

Jurnal Fokus Manajemen Bisnis, 2014

This research is aimed to obtain empirical evidence on the factors affecting the distribution of bank credit. There are many factors affecting the distribution of bank credit. However, this research was only limited by dominant factors affecting the distribution of bank credit obtained from bank credit theories and the results from previous research studies. Therefore, factors which were the selected independent variables in this research were Third Party Funds (DPK), Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Return On Assets (ROA), and Loan to Deposit Ratio (LDR). While the dependent variables were the distribution of bank credit which was proxied by Loan to Asset Ratio (LAR) variable. The results of the research indicates that simultaneously, the variables of DPK, CAR, NPL, ROA, dan LDR significantly affect the distribution of bank credit in the period 2010-2012. While partially, a result was obtained that DPK, NPL, and LDR variables significantly affect the distri...

SENTRALISASI

This study aims to measure the effectiveness of internal factor proxies from the aspect of efficiency as measured by the ratio of operating costs and operating income (BOPO), liquidity as measured by the loan-deposit ratio (LDR), bank size as measured by total assets, and aspects of bank capital that measured by the capital buffer and external factors using the Repo Rate, and inflation on non-performing loans in the ten largest banking industries in Indonesia. The sample consists of the 10 largest banks in Indonesia with the criteria of having total bank assets of the total national banking assets above 2%. The data used are annual data from 2011 to 2020. The results show that from the bank's internal factors, BOPO has a positive and significant effect on the NPL. LDR, and variable capital buffer, a negative and significant on NPL. While the size of the bank obtained results that are not significant to the NPL. From external factors, the results obtained where interest rates hav...

International Journal of Economics Development Research (IJEDR), 2022

This research aims to determine the effect of internal and external factors on bank lending. The independent variables analyzed were Third-Party Funds (DPK), Capital Adequacy Ratio (CAR), CASA ratio, BI rates, and inflation. While the dependent variable in this study is bank credit distribution. This research was conducted by taking secondary data through the publication of Bank Indonesia (www.bi.go.id), the Financial Services Authority (www.ojk.go.id), and Bureau Van Dijk (www.orbis.bvdinfo.com). The population in this study are banks listed on the Indonesia Stock Exchange (IDX). A sampling of this study was conducted using the purposive sampling method, which amounted to 15 banks with the largest assets in Indonesia in 2018. The research period used is based on annual banking reports, 2011-2018. This research is a quantitative study using the FEM (Fixed Effect Model) method. The results of this research indicate that the variable of Third-Party Funds, Capital Adequacy Ratios, CASA...

2018

Non performing loan (NPL) is the risk of bank credit . Banks in Indonesia have NPL higher than other countries in ASEAN. So, it is important to know factors influencing NPL. This Research aims to examine and to analyze macro and bank factor to NPL bank in Indonesia 2011-2015. Statistic tehnique used in this research is Multiple Regression test. The result is simultaneously CAR, Listed, BOPO, LAR, Bi Rate, Exchange Rate, LDR, and ROE positive significant influence to NPL. Based on t test, the result is BOPO, Listed, LAR and LDR significant influence to NPL, while CAR, Bi Rate, Exchange Rate, and ROE no significant influence to NPL. This research expected that it can be useful for management bank to manage NPL. Bank is expected to select the lending of credit the society.

Universal Journal of Accounting and Finance, 2020

Along with the level of development of the times, the development of the business world in Indonesia has entered the era of globalization which has resulted in the opening of markets in Indonesia to compete with foreign competitors through trade. Based on the financial ratios and policies of banks that want to review the health of their banks, the measures that must be considered are Macroeconomics, namely the exchange rate, inflation, Central Bank of Indonesia (BI) rate, lending, namely the size of the value of the credit channeled, Collectability is the size of Non-Performing Loans (NPL) and Fund Raising. The Purpose of This Research is to Influence BI Rate, Exchange Rates, Inflation and Third Party Funds (DPK) On Credit Distribution and the Impact on Non-Performing Loans (NPL) At Bank XYZ Commercial Segment. The research method used is a method with a quantitative research approach, while the type of research is descriptive and verification research. To test the research hypothesis, the Path Analysis method is used. Partially the BI rate and Third Party Funds (DPK) have a significant effect on lending, while the exchange rate and inflation have insignificant effects on lending at the commercial segment Bank of XYZ. In addition, the exchange rate and DPK have a significant influence on NPL, while the BI rate, inflation and lending have not significant influence on NPL in the commercial segment Bank of XYZ.

e-Finanse

This research study aims to investigate the potential inner factors of the lending rate in the commercial banking sector of Pakistan. For this purpose, seven bank-specific explanatory variables (capital adequacy, management efficiency, liquidity, asset quality, investment to asset, loan to asset and deposit to asset ratios) were selected to determine their impact on lending behavior. Panel data techniques were emplyed on secondary data collected from the annual financial reports from a sample of ninteen major commercial banks over a period of 2007 to 2014. For the purpose of analysis, descriptive statistics, Pearson correlation and panel data techniques for regression analysis such as the fixed effect regression models were considered after conforming to the Hausman specification (1978) test. The findings of this study revealed that only four out of seven explanatory variables (ratio of investment to total assets, deposit to asset, loan to asset and liquidity ratio) have a significa...

International Journal of Advance Study and Research Work, 2020

This research aims to examine the effect of Third Party Funds (TPF), Interest Rates (IR), Bank Capital, and Non-Performing Loan (NPL) towards Credit Distribution on commercial banks in Indonesia with period 2012-2018. This research using 84 monthly data of commercial banks in Indonesia period 2012-2018. This research uses the Error Correction Model (ECM) analysis and E-views 10 analysis tools. The result of the research shows that in the long term, Third Party Funds, Interest Rates, Bank Capital, and Non-Performing Loan affects Credit Distribution. In the short term, Third Party Funds and Non-Performing Loan affect Credit Distribution. Meanwhile, Bank Capital and Interest Rates have no effect on Credit Distribution on commercial banks in Indonesia. Simultaneously on the long term and short term all variables (Third Party Funds, Interest Rates, Bank Capital, and Non-Performing Loan) have an effect on Credit Distribution on conventional commercial banks in Indonesia period 2012-2018.

Annals of Management and Organization Research, 2023

This study compares the determinants of liquidity of Islamic Banks (IBs) and Conventional Banks (CBs) based on the loan-to-deposit ratio (LDR) and financing-to-deposit ratio (FDR) between 2016 and 2020. Research Methodology: The data analysis technique used was panel data regression. Results: The results show Economic growth has a positive effect on banking liquidity risk, while non-performing loans (financing) have a negative effect on banking liquidity risk. Limitations: The frame time in this research was 2016-2020 which, before Bank Syariah Mandiri, Bank Rakyat Indonesia (BRI) Syariah, and Bank Negara Indonesia (BNI) Syariah merged into Bank Syariah Indonesia. Contribution: This study can be used as a reference for preparing or perfecting regulations that can be bolder in expanding credit (financing). Commercial banks are expected to be able to manage liquidity so that the liquidity ratio is not less than or exceeds the tolerance limit, especially for CBs, and are used as evaluation material for the performance of IBs, especially CBs. Novelty: Several previous studies conducted separate analyses of the determinants of LDR and FDR in one type of commercial bank and showed contradictory results. This research did not conduct separate analyses in one type of bank but combined the determinants so that they could cause liquidity risk by measuring LDR on BUK and FDR on BUS to discuss these conflicting findings.

This research study aims to investigate the potential inner factors of the lending rate in the commercial banking sector of Pakistan. For this purpose, seven bank-specific explanatory variables (capital adequacy, management efficiency, liquidity, asset quality, investment to asset, loan to asset and deposit to asset ratios) were selected to determine their impact on lending behavior. Panel data techniques were emplyed on secondary data collected from the annual financial reports from a sample of ninteen major commercial banks over a period of 2007 to 2014. For the purpose of analysis, descriptive statistics, Pearson correlation and panel data techniques for regression analysis such as the fixed effect regression models were considered after conforming to the Hausman specification (1978) test. The findings of this study revealed that only four out of seven explanatory variables (ratio of investment to total assets, deposit to asset, loan to asset and liquidity ratio) have a significant relationship with lending rate. Two of the significant determinants (liquidity ratio and investment to asset ratio) are positively correlated while the remaining two significant explanatory variables (loan to asset ratio and deposit to asset ratio) are found negatively correlated with lending rate. The findings of the study are applicable to the banking sector of Pakistan. The current study ignored the use of macro factors like GDP and inflation, etc. which could be used in future research. Analysis of some inner factors affecting the lending rate and commercial bank behavior