INFLUENCE OF BANK'S HEALTH RATIO ON FINANCIAL PERFORMANCE OF BANKING COMPANIES LISTED ON IDX FOR THE 2018-2020 PERIOD

Abstract

This study aims to analyze the effect of Non-Performing Loans (NPL), Good Corporate Governance
(GCG), Net Interest Margin (NIM) and Capital Adequacy Ratio (CAR) on the Financial Performance
of Banking Companies Listed on the IDX for the 2018-2020 period. The research used descriptive
quantitative. The independent variables are Non Performing Loan (NPL), Good Corporate Governance
(GCG), Net Interest Margin (NIM) and Capital Adequacy Ratio (CAR) and financial performance as
the dependent variable. Population of financial statements of banking companies listed on the Indonesia
Stock Exchange for the period 2018-2020. The sample is 35 companies with purposive sampling
method. Multiple regression analysis. The results showed that the partial test between NPL and ROA
obtained tcount = -2,953 and sig = 0.004. partial test between GCG and ROA obtained t value = 1.799
and sig = 0.075. partial test between NIM and ROA obtained tcount = 3.078 and sig = 0.003 and partial
test between CAR and ROA obtained tcount = 3.644 and sig = 0.000. Based on the results of the study,
it can be concluded that partially Non-Performing Loan (NPL), Net Interest Margin (NIM) and Capital
Adequacy Ratio (CAR) have an effect on Financial Performance and the Good Corporate Governance
(GCG) variable has no effect