Effect of DPK and NPL on Credit Distribution at Private Bank Period 2016-2020

Abstract

: The role of financial institutions such as banks can be very helpful in improving the economy for the community in collecting, distributing and managing public funds. Banks need to know several factors that influence lending activities in order to maximize them in banking activities. The purpose of this research is to determine the effect of the independent variables on Third-party Funds (DPK) and Non-Performing Loans (NPL) on loans extended by PT. Bank MNC Internasional Tbk. The research data was obtained from financial report data at PT. Bank MNC International Tbk. registered on www.idx.co.id which is the official website of the Indonesia Stock Exchange (IDX) for the 2016-2020 period. The method in this research is to use a quantitative method by conducting hypothesis testing and statistical testing through classical assumption tests which include normality tests, multicollinearity tests, heteroscedasticity tests, and autocorrelation tests with multiple linear regression analysis and t tests and f tests are performed. Partially, the results of this research indicate that DPK and NPL have no effect on lending. The results of the f test show that TPF and NPL together do not affect lending.