The Influence of Bank Characteristics on Capital Adequacy Ratio

This study aims to determine the influence model on Return on Asset (ROA), Loan to Deposit (LDR), and Net Performing Loan (NPL) on Capital Adequacy Ratio (CAR) in banks in Indonesia. Capital adequacy is an important part of banking financial performance, because the achievement of an optimal Capital Adequacy Ratio (CAR) indicates that the bank has sufficient capital to fund each of its operations. Sufficient capital allows banks to easily innovate, so as to develop the company's productivity. Interestingly, CAR is influenced by various factors, so it is necessary to academically examine the factors that affect CAR. This study uses a quantitative approach with an empirical method using Bank BTN data during the 2010-2020 period using the help of SPSS software. Data processing calculations using the classical assumption test and hypothesis testing. Classical assumption test by calculating normality, heteroscedasticity, and autocorrelation tests. Hypothesis testing by calculating the t-test and the F-test. The results showed that this model contributed 81% to the change in CAR. Partially, it shows that ROA has a negative effect on CAR, meaning that the lower the ROA, the higher the CAR, LDR has a negative effect on CAR, meaning that the lower the LDR, the higher the CAR, and NPL has a negative effect on CAR, meaning that the lower the NPL, the higher the CAR. This indicates that an increase or decrease in ROA, LDR, and NPL has an impact on changes in Bank BTN's CAR. Keywords: Finance, Return on Asset (ROA); Loan to Deposit (LDR); Net Performing Loan (NPL); Capital Adequacy Ratio (CAR)