<![CDATA[This study aims to analyze the effect of Non-Performing Loans (NPL) on bank liquidity in three major Indonesian banks, namely BNI, BRI, and CIMB Niaga, during the 2019–2023 period. The second objective is to describe the importance of credit risk management in maintaining banking liquidity stability amid changing economic conditions. This study employs a quantitative approach using secondary data obtained from the annual financial reports of the selected banks. Bank liquidity is measured using the Loan to Deposit Ratio (LDR), while the relationship between variables is analyzed through simple linear regression. The findings indicate that Non-Performing Loans (NPL) have a negative effect on bank liquidity, suggesting that an increase in problematic loans tends to reduce a bank’s liquidity level. However, the effect is not statistically significant. Furthermore, the coefficient of determination (R-Square) shows that NPL accounts for only 2.4% of the variation in bank liquidity, while the remaining 97.6% is explained by other factors not included in this study. These findings highlight that although NPL is an important indicator of credit risk, banking liquidity is influenced by a broader range of financial and operational factors. Therefore, effective credit risk management remains essential to support liquidity stability and overall banking performance.]]>
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