DETERMINAN PENYALURAN KREDIT BANK PEMBANGUNAN DAERAH (BPD) KONVENSIONAL DI INDONESIA: PERSPEKTIF DANA PIHAK KETIGA, NON PERFORMING LOAN, CAPITAL ADEQUACY RATIO, DAN LOAN TO DEPOSIT RATIO

Banking has a very important role in supporting the stability of the financial system. Banks also act as intermediary institutions by collecting funds from the public and then channeling them back in the form of credit. Several factors can influence the lending process, and can be used to assess banking performance, including Third Party Funds, Non Performing Loan, Capital Adequacy Ratio, and Loan to Deposit Ratio. This study aims to determine the effect of Third Party Funds, Non Performing Loan, Capital Adequacy Ratio, and Loan to Deposit Ratio on lending to Conventional Regional Development Banks (BPD) in Indonesia for the 2019-2023 Period. The sampling technique used is purposive sampling and obtained 20 banks that are suitable as samples. The data used is the annual report or audited financial statements published through the official website of each bank. The data analysis technique used is quantitative analysis using parametric statistical methods implemented through the SPSS application program. The results of this study indicate that partially Third Party Funds, Non Performing Loan, and Loan to Deposit Ratio affect lending, while Capital Adequacy Ratio has no effect on lending. The variable that has the strongest effect on lending is the Third Party Funds variable.