<![CDATA[The main source of bank income is from interest, where interest income is obtained because banks extend credit to the public. Thus, credit disbursement becomes very important for banks. However, in credit disbursement, banks must be careful because of the risks faced by banks in extending credit. The research objective was to examine the effect of banking risk and profitability on credit disbursement. Bank risk consists of liquidity risk, which is measured by the loan to deposit ratio (LDR), credit risk, which is measured by non-performing loans (NPL), operational risk, which is measured by operating expenses to operating income (OEIR), and capital, which is measured by capital adequacy. ratio (CAR). While profitability is measured by return on assets (ROA), third party funds (DPK) are measured by the natural log of total third party funds. The population in this study are conventional banks listed on the Indonesia Stock Exchange. Samples were taken as many as 26 banks with purposive sampling method. The observation period is 6 years 2016 – 2021 with quarterly data. Hypothesis testing uses multiple linear regression with a significance level of 0.05. The results showed that profitability, loan to deposit ratio, capital adequacy ratio and bank efficiency level (OEIR) had a positive effect on lending. Meanwhile, non-performing loans have no effect on credit distribution.]]>
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