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Journal : KEUNIS

THE MACRO-PRUDENTIAL POLICY AND BANK NON-PERFORMING ASSETS IN INDONESIA Gustriani, Gustriani; Suhel, Suhel; Melliny, Vinny Dwi; Pertiwi, Rasyida; Nida, Rahma
KEUNIS Vol. 11 No. 1 (2023): JANUARY 2023
Publisher : Finance and Banking Program, Accounting Department, Politeknik Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32497/keunis.v11i1.3655

Abstract

This study examines the effect of the Macro-prudential Intermediation Ratio (MIR) as an instrument of Bank Indonesia's macro-prudential regulation on Non-Performing Assets (NPA) as one of the banking industry performance indicators in Indonesia. In addition, this study also examines several other independent variables such as bank assets as an indicator of bank size, Bank Indonesia interest rates (BI rate), and inflation as macroeconomic indicators and their effect on NPA. The NPA, MIR, and bank asset data used in this study consist of 109 commercial banks operating in Indonesia during the period from January 2015 to December 2020. This study uses an Ordinary Least Square (OLS) analysis approach by undertaking classical assumption tests and statistical tests. The results show that (1) MIR, bank assets, BI rate, and inflation simultaneously have a significant effect on NPA (2) Partially, bank assets have a negative and significant effect on NPA while other variables including macro-prudential policy have no significant effect on NPA (3) Variable MIR, bank assets, BI rate, and inflation can explain variations of NPA variable by 34% (4) Larger bank size encourages prudent financing and reduces NPA.
Co-Authors Abdul Bashir ABDUL BASHIR, ABDUL Adawiyah, Robi'Atul Adella Febriana Adnan, Nazeli Ahmad Syathiri Ainul, Putri Siski AK, Syamsurijal Akhmad Afandi Alghifari Mahdi Igamo Andi Nurul Astria Arief Annisa Darmawahyuni Aprianti, Ria Arief, Andi Nurul Astria Bernadette Robiani Darmawahyuni, Annisa Debiyanti, Mega Delovarova, Leila F. Dewi Lusianita Dirta Pratama Atiyatna Djambak, Syaipan Emylia Yuniarti Emylia Yuniarti Febriany, Novita Festriani Christine Fitriyanti, Eka Gustriani Gustriani Gustriani, Gustriani H.T. Dzulkarnain Amin Habibi, Muhammad Ammar Hamira, Hamira Hamira, Hamira Harunurrasyid, Harunurrasyid HASNI YUSRIANTI Hidayat, Ariodillah Ichsan Hamidi Ichsan Hamidi Imam Asngari Imam Asngari Imelda Imelda Ishak, Zulkarnain Isnurhadi Isnurhadi Jatmiko Jatmiko Kodrat Wibowo Kurnia Sari Latif, Abdul Liliana Liliana Linda Linda Luk Luk Fuadah Mardalena Mardalena Marwa, Taufiq Marwa, Taufiq Mega Debiyanti Melliny, Vinny Dwi Muhammad Basir Kimin Muhammad Isnadhi Muhammad Subardin Muhammad Teguh Muhammad Umar Nuh Mukhlis Mukhlis Mukhlis Mukhlis Nazeli Adnan Nazeli Adnan Nida, Rahma Nindi Listika Nuke Dina Apriyanti Pertiwi, Rasyida Putri Devintha S.B. Putri Siski Ainul Ria Aprianti Rina Indiastuti Rizka agi sawitri Saadah Yuliana Shelly Febriana Kartasari Silvia Wati Hidayat Skolastika Ferlicia Sri Andaiyani Subardin, Muhammad Sukanto Sukanto Syamsurijal AK Syathiri, Ahmad Taufiq Taufiq Taufiq Taufiq Vinny Dwi Melliny Welly Nailis Welly Nailis, Welly Yuliana, Saadah Yuniarti, Emylia