The Effect of Sustainability Report Disclosure, Profitability, and Liquidity on Non-Performing Loan with BI Rate as Moderating Variable: Empirical Study on Banking Sector in Indonesia

This study aims to analyze the effect of sustainability report disclosure, profitability, and liquidity on non-performing loans (NPL) with BI Rate as a moderating variable in banks listed on the Indonesia Stock Exchange (IDX) during the period 2018-2023. The method used is panel data regression with moderation model. The results showed that the disclosure of sustainability reports had a significant negative effect on NPL, while profitability and liquidity had no significant effect. BI Rate moderates the relationship between sustainability report and profitability on NPL, but does not moderate the effect of liquidity. These results indicate the importance of sustainability practices and internal bank performance in reducing the risk of non-performing loans, especially in volatile interest rate conditions.