Analysis of the Effect of Return on Assets and Reserve Requirements on Non Performing Loans through Capital Adequacy Ratio as an Intervening Variable in Conventional Commercial Banks in Indonesia
Keywords:
Return on Assets, Reserve Requirements, Capital Adequacy Ratio, Non-Performing Loans, Banking
Abstract
Indonesia’s banking sector plays an essential role in sustaining financial stability and supporting economic growth through credit allocation and risk supervision. This study examines the influence of Return on Assets (ROA) and Reserve Requirements on Non-Performing Loans (NPL), with the Capital Adequacy Ratio (CAR) acting as a mediating variable in conventional commercial banks in Indonesia during 2015–2025 using Partial Least Squares. The results indicate that ROA has a significant inverse effect on NPL, while Reserve Requirements and CAR show negative but insignificant relationships. ROA also has a positive yet weak connection to CAR, whereas Reserve Requirements negatively but insignificantly affect CAR. In addition, CAR cannot mediate the relationship between ROA, Reserve Requirements, and NPL. These findings suggest that financing quality is more strongly determined by internal managerial performance than by liquidity regulation or solvency policy
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Cendani, M.A. and Puspitasari, I.F. (2025) “Effectiveness of Macroprudential Policy on Banking Credit Growth in Indonesia ( 2015-2023 ),” 9(2). Available at: https://doi.org/10.18196/jerss.v9i2.26548.
Desiyanti, R. (2024) Manajemen Perbankan. LPPM Universitas Bung Hatta.
Diamond, D.W., Bernanke, T.B.S. and Dybvig, P.H. (2022) “Financial Intermediation And The Economy,” 50005, pp. 0–72.
Fachrurrozie et al. (2025) “Bank-Specific Determinants and Non-Performing Loans of Indonesian Banks : Does Governance Matter ?,” 18(1). Available at: https://doi.org/10.22452/AJAP.vol18no1.1.
Fahirah, E. et al. (2024) Kepatuhan Dan Apu-Ppt Konsep Dan Aplikasinya Dalam Tata Kelola Bisnis Bank. Airlangga University Press.
Fajriati, K.I., Chaidir, T. and Yudha, I.D.K. (2022) “Analisis Pengaruh Indikator Kebijakan Moneter Terhadap Non Performing Loan ( NPL ) Bank Umum Persero Di Indonesia Tahun 2010 ‐ 2017,” pp. 11–24.
Loang, O.K., Ahmad, Z. and Naveenan, R.. (2022) “Non-performing loans, macroeconomic and bank-specific variables in southeast asia during covid-19 pandemic,” 68(3), pp. 941–961. Available at: https://doi.org/10.1142/S0217590822500679.
Maharani, N.S. and Trishananto, Y. (2025) “Pengaruh NPF dan FDR terhadap ROA dengan CAR sebagai Variabel Intervening Pada Bank Umum Syariah di Indonesia Tahun 2019-2023,” 9865, pp. 113–122.
Matanubun, Y. and Wiyarni, W. (2023) “Non Performing Loan as Mediation of the Effect Capital Adequacy Ratio and Loan to Deposit Ratio on Profitability,” 06(09), pp. 5608–5617. Available at: https://doi.org/10.47191/ijsshr/v6-i9-37.
Maulana, A.K. et al. (2023) “Faktor-Faktor Yang Mempengaruhi Loan Loss,” 5942, pp. 1–10.
Maulana, Y. and Salim, M.N. (2025) “The Influence of CAR , LDR , OER , and Bank Size on NPL Mediated by GCG in KBMI III and IV,” 4(1), pp. 79–96.
Munthe, S.A.P. et al. (2025) “Dynamic Analysis of Non-Performing Loans in Indonesian Banking,” 0965.
OJK (2025) Statistik Perbankan Indonesia, Otoritas Jasa Keuangan. Available at: https://ojk.go.id/id/kanal/perbankan/data-dan-statistik/statistik-perbankan-indonesia/default.aspx.
Ompusunggu, H. and Wage, M.S. (2021) Manajemen Keuangan. Batam Publisher.
Oppusunggu, L.S. and Allo, Y.R.M. (2021) Kecukupan Modal Inti Bank. Widina Bhakti Persada Bandung.
Permatasari, D. and Susilo, D.E. (2023) “Pengaruh CAR, LDR, ROA, dan Inflasi terhadap NPL pada Bank Umum Konvensional,” 18(3), pp. 884–897.
Rahmawati, Z. and Pratiwi, R.S. (2025) “The Role of CAR as a Mediating Variable in the Impact between NPF and FDR on ROA of Islamic Banks,” 05(02). Available at: https://doi.org/10.22219/jamanika.v5i2.41556.
Sudarmanto, E. et al. (2021) Manajemen Risiko Perbankan. Yayasan Kita Menulis.
Syarifuddin, F. and Sakti, A. (2021) Instrumen Moneter Islam. Pt. Rajagrafindo Persada.
Published
2026-07-19
How to Cite
Yovanda, C. K., & Sishadiyati. (2026). Analysis of the Effect of Return on Assets and Reserve Requirements on Non Performing Loans through Capital Adequacy Ratio as an Intervening Variable in Conventional Commercial Banks in Indonesia. International Journal of Economics, Business and Innovation Research, 5(04), 4568-4580. https://doi.org/10.63922/ijebir.v5i04.3846
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