Research Paper
Year: 2021 | Month: December | Volume: 8 | Issue: 12 | Pages: 686-694
DOI: https://doi.org/10.52403/ijrr.20211283
Analysis of Factors Affecting Financial Performance of BUKU 3 Banks with Growth of Third Party Funds as Moderating Variable
Rasmi Naibaho1, Azhar Maksum2, Rujiman3
1,2,3Universitas Sumatera Utara, Indonesia.
Corresponding Author: Rasmi Naibaho
ABSTRACT
The purpose of this study was to determine and analyze the factors affecting financial performance of BUKU 3 banks with growth of third party funds as moderating variable. This study uses a causality research design. The population in this study is the Banking Service Industry Company which is all Banking Companies listed on the Indonesia Stock Exchange which consists of 46 Banks. The year of observation is 2010-2020. 12 Banking Companies that have met the requirements with 11 years of research in order to obtain 132 observations.
In this research, the technical analysis used is panel data regression analysis technique. The results showed that capital adequacy ratio has no effect on financial performance. Operating expense to operating income has a negative effect on financial performance. Net interest margin has a positive effect on financial performance. Non performing loan has no effect on financial performance. Loan to funding ratio has no effect on financial performance. Minimum statutory reserve has no effect on financial performance. Female board of directors has no effect on financial performance. Third party funds cannot moderate the relationship between capital adequacy ratio and financial performance. Third party funds can moderate the relationship between operating expense to operating income on financial performance. Third party funds cannot moderate the relationship between net interest margin and financial performance. Third party funds cannot moderate the relationship between non performing loan and financial performance. Third party funds cannot moderate the relationship between loan to funding ratio and financial performance. Third party funds cannot moderate the relationship between minimum statutory reserve and financial performance. Third party funds can moderate the relationship between female board of directors and financial performance.
Keywords: Financial Performance, Growth, Funds.
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