Effect of Credit and Credit Risk on Profitability of Central Asia Bank

Pompong B Setiadi, Ratna Ursula S

Abstract: One of the bank's products is credit, which until now is still a productive asset that provides primary income. But it can also be a failure in a bank if the bank contains a high risk that can affect the survival rate of a bank. This study aims to analyze the effect of lending and credit risk on profitability at Central Asia Bank. The study was conducted by taking data for 5 years, namely from the period 2013-2017 using a quantitative approach. Data collection techniques in this study by means of documentation and testing analysis using multiple linear regression analysis with SPSS 16.0 software. The results of the study in testing the hypothesis obtained LDR variable regression coefficient of 0.027 and the NPL variable of 0.176, and the results of the F statistic test amounted to 64.931 with a significance of 0.015. Significance value F

Keywords: Giving Credit, Credit Risk, Profitability

How to Cite?: Pompong B Setiadi, Ratna Ursula S, "Effect of Credit and Credit Risk on Profitability of Central Asia Bank", Volume 8 Issue 11, November 2019, International Journal of Science and Research (IJSR), Pages: 1258-1265, https://www.ijsr.net/getabstract.php?paperid=ART20202762, DOI: https://dx.doi.org/10.21275/ART20202762