Detail Cantuman

Abstract
This study seeks to analyze the effect of Non-Performing Loans and Capital Adequacy Ratio on Return on Assets on ten conventional banks
listed on the Indonesia Stock Exchange (BEI-IDX). This study uses secondary panel data for 2015-2019 in the form of CAR and NPL values
from ten conventional banks listed on the BEI-IDX during the 2020 observation period. The research approach is quantitative descriptive
with data analysis methods, namely, linear regression. The testing phase of this study includes: transform value, F-test, T-test and hypothesis
test with significancy level sig < 0.05. The results of this study reveal that Non-Performing Loans had a significant negative effect (t =
-2,637) (0.011 <0.0) on Return on Assets, while Capital Adequacy Ratio has no significant effect on ROA (0.760 > 0.05). R2 value is 0.128
or 12.8%. It has a significant effect on variables, calling efforts by banks, governments, and authorities monetary of related institutions to
maintain the stability of finance. The reduction of Non-Performing Loan impacts on assets and capital adequacy ratio, besides, the normal
NPL will control the stability of finance. If a balance is created either in the form of values or amounts of the variables, the reduction in
Non-Performing Loans will be controlled.
Keywords: Non-Performing Loan, Capital Adequacy Ratio, Return on Assets, Indonesia