Year: 2024 | Month: June | Volume: 11 | Issue: 6 | Pages: 792-807
DOI: https://doi.org/10.52403/ijrr.20240686
The Effect of Operating Expenses on Operating Income, Loan-To-Deposit Ratio, and Return on Assets on Non-Performing Loans at Rural Banks with Inflation as an Intervening Variable. (Study on Rural Banks Registered in OJK for the Period 2018 - 2022)
Ridho Wahyu Ginting1, Fahmi Natigor Nasution2, Keulana Erwin3
1,2,3Department of Accounting, Faculty of Economic and Business, Universitas Sumatera Utara, Indonesia.
Corresponding Author: Ridho Wahyu Ginting
ABSTRACT
This study was conducted to measure Operating Costs on Operating Income, Loan to Deposit Ratio, and Return on Assets on Non-Performing Loan at Rural Banks with Inflation as an Intervening Variable using the Rural Banks Financial report data posted on the official OJK web. This study uses secondary data from the financial statements of Banking Companies registered with the OJK for 2018-2022. The sample was taken using a purposive sampling method, which resulted in 15 rural banks registered with OJK in 2018-2022. The data used in this study are quarterly financial reports of 15 companies accessed through the website www.ojk.go.id. Data processing uses SmartPLS for descriptive statistical analysis tests and PLS-SEM analysis. The results of this study indicate that the operating costs on operating income and ROA variables have a positive and significant effect on inflation. In contrast, the LDR variable does not affect inflation. The Operating Costs on Operating Income variable has a positive and significant effect on the NPL variable, while the LDR and ROA variables do not. The inflation variable has a negative influence on the NPL variable. The inflation variable, as an intervening variable, can mediate the effect of Operating Costs on Operating Income and ROA on NPL on Rural Banks in Indonesia in 2018-2022.
Keywords: Non-Performing Loan, Operating Expenses on Operating Income, Loan to Deposit Ratio, Return on Assets, Inflation.
[PDF Full Text]