Research Paper
Year: 2021 | Month: March | Volume: 8 | Issue: 3 | Pages: 610-620
Analysis of Factors That Affect the Distribution of Micro Credit in the Private Banking
Helmina Simanjuntak1, HB. Tarmizi2, Murni Daulay3
1Postgraduate Students Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
2,3Postgraduate Lecturer Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
Corresponding Author: Helmina Simanjuntak
ABSTRACT
Bank is a financial institution which grants credit. The objective of the research was to find out and analyze same factor such as Capital Adequacy Ratio, Fund of the Third Party, Non-Performing Loan, and Interest Rate which influenced granting micro-credit in private banks. The research was done at Bank Danamon, bank BTPN, Bank CIMB Niaga in the period of 2014-2019 by using quarter data. The research used quantitative method with secondary data in the form of panel data which were processed by using E-view’s program. The result of the research showed that 1) Capital Adequacy Rate (CAR) had negative and significant influence on granting micro-credit in private banks, 2) Fund of the Party had positive and significant influence on granting micro-credit in private banks, 3) Non-Performing Loan (NPL) had negative and significant influence on granting micro-credit in private banks, and 4) Interest Rate had negative and significant influence on granting micro-credit in private banks.
Keywords: CAR, DPK, NPL, Interest Rate, Granting Micro-Credit.
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