DETERMINANTS OF LOAN LOSS PROVISIONS: NPL, INCOME DIVERSIFICATION, OPERATIONAL EFFICIENCY, AND BANK SIZE AS MODERATOR

Elyta Dwi Cahyati, Liliek Nur Sulistiyowati, Rollis Ayu Ditasari

Abstract


This study aims to analyze the effects of Non-Performing Loans (NPL), Income Diversification, dan Operational Efficiency on Loan Loss Provisions (LLP), with Bank Size as a moderating variable, in conventional banks listed on the Indonesia Stock Exchange (IDX) during the 2020-2025 period. The data used were secondary data in the form of annual financial statements obtained from the Indonesia Stock Exchange and the official websites of each bank. Data were collected through documentation techniques using purposive sampling. The research sample consisted of 40 banks. Data were analyzed using multiple linear regression dan Moderated Regression Analysis (MRA) with the assistance of IBM SPSS Statistics 26. The results indicate that Non-Performing Loans (NPL) have a positive dan significant effect on Loan Loss Provisions (LLP), while Income Diversification has a negative dan significant effect on Loan Loss Provisions (LLP). Operational Efficiency also has a positive and significant effect on Loan Loss Provisions (LLP). Furthermore, Bank Size moderates the effect of Operational Efficiency on Loan Loss Provisions (LLP) by strengthening the relationship. However, Bank Size does not moderate the effects of Non-Performing Loans (NPL) dan Income Diversification on Loan Loss Provisions (LLP).

Keywords: NPL, Income Diversification, Operational Efficiency, Bank Size, LLP


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References


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