<![CDATA[Non-performing loans (NPLs) represent a systemic risk that threatens financial stability and the efficiency of capital allocation. Therefore, identifying their determinants is essential for the Indonesian banking system. This study aims to analyze the factors affecting non-performing loans in Indonesian banks. Secondary data were obtained from the annual reports of banks listed on the Indonesia Stock Exchange during the 2021–2025 period. The sample consisted of 44 banks, resulting in 220 observations selected using purposive sampling. The data were analyzed using dynamic panel data regression with EViews software. The independent variables included Return on Assets (ROA), Capital Ratio (CAP), Credit Growth, GDP Growth Rate, Inflation Rate, Lagged NPL Ratio, and Bank Size. The results indicate that the Lagged NPL Ratio and ROA have a positive effect on non-performing loans, while CAP, Credit Growth, GDP Growth Rate, Inflation Rate, and Bank Size have no significant effect on non-performing loans. Based on these findings, bank managers are encouraged to strengthen credit risk management, while investors should consider these factors in making investment decisions. Future research is recommended to improve the model specification and incorporate additional variables, such as bank liquidity, to provide more comprehensive results.]]>
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