Overview

Original Research

STRATEGY TO MAXIMIZE DOMESTIC INTERNAL MONETARY FACTORS IN OVERCOMING NON-PERFORMING LOANS (NPL) OF RURAL BANKS DURING COVID-19 PANDEMIC: AN EMPERICAL STUDY FROM INDONESIA

HENDRA RAZA 1, DIKY IRAWAN 2, and RICO NUR ILHAM 3.

Vol 17, No 06 ( 2022 )   |  DOI: 10.5281/zenodo.6731475   |   Author Affiliation: Faculty of Economics and Business, Universitas Malikussaleh 1,2,3.   |   Licensing: CC 4.0   |   Pg no: 1270-1278   |   To cite: HENDRA RAZA, et al., (2022). STRATEGY TO MAXIMIZE DOMESTIC INTERNAL MONETARY FACTORS IN OVERCOMING NON-PERFORMING LOANS (NPL) OF RURAL BANKS DURING COVID-19 PANDEMIC: AN EMPERICAL STUDY FROM INDONESIA. 17(06), 1270–1278. https://doi.org/10.5281/zenodo.6731475   |   Published on: 25-06-2022

Abstract

This study aims to test the influence of CoViD 19, Inflation, BI Interest Rate – 7 Day (Reverse) Repo Rate (BI7DRR) and Loan to Deposit Ratio (LDR) on Non-Performing Loans (NPL) of People's Credit Banks registered with the Financial Services Authority during the research period from January 2018 – October 2020. The sample in this study is a national people's credit bank with data obtained from the publication of statistics banking Indonesia financial services authority (OJK). This study used time series data as many as 34 observations with multiple linear regression estimates and CoViD 19 as dummy variables before and during the CoViD 19 pandemic. The results found that the variables CoViD 19 and LDR had a positive and significant effect while bi7drr inflation and interest rates had a negative and insignificant influence.

Keywords

Covid 19, Inflation, BI7DRR Interest Rate, LDR, NPL.