Abstract
ABSTRACT
The existence of differences in the performance levels of various banks in Indonesia
and the existence of problems inthe banking industry to date have caused a decline in bank
performance accompanied by the pandemic caused by COVID-19, making research on the
factors that affect bank performance important to study. This study was conducted to analyze
the effect of bank size (size), Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL),
Income Diversification, Loans to Deposit Ratio (LDR), and Operating Costs and Operating
Income (BOPO) on performance. go-public conventional commercial banks in Indonesia. Bank
Indonesia's performance in this study was measured using the Return of Assets (ROA).
The number of samples used in this study were 25 conventional public banks in
Indonesia in the 2016-2020 period. The data selection method used the purposive sampling
method. Theresearch data used was obtained based on several reports on banks including
bank financial statements, bank annual reports, and Indonesian Banking Publication and
Statistics Reports published by the Financial Services Authority. Hypothesis testing in this
study used multiple linear regression analysis with SPSS 22 program.
The results showed that the Capital Adequacy Ratio (CAR), Income Diversification,
and Loans to Deposit Ratio (LDR) had a significant positive effect on bank performance. Bank
size (size)has a positive but not significant effect on bank performance in Indonesia, while
Non-Performing Loans (NPL) and Operating Costs and Operating Income (BOPO) have a
significant negative effect on bank performance in Indonesia for the 2016-2020 period.