JEFMS Journal

ABSTRACT:

Private Bank activities can’t be separated from the company’s profit known as Return On Assets. Bank management needs to maintain the amount of Return On Assets. The goal of this study is to examines the effect of inflation, interest rate, gross domestic product, operational efficiency ratio and loan to deposits ratio regarding on Return on Assets at private bank listed on Indonesia Stock Exchange period 2016-2020. Quantitative data is used in this type of the research is regression analysis multiple linear. The population in this study were 34 private banks listed in Indonesia Stock Exchange period 2016-2020. Samples taken as much as 18 company. From this analysis, the regression analysis of Return On Assets = 3.754 + 0.067 Inflation + 0.090 Interest Rate – 5.500 Gross Domestic Product – 0.042 Operational Efficiency Ratio + 0.000 Loan to Deposits Ratio + e. The result of this research is that inflation has no effect on ROA in private banks which are listed on the Indonesia Stock Exchange period 2016-2020. Interest rate has no effect on ROA on private banks which are listed on the Indonesia Stock Exchange period 2016- 2020. Gross Domestic Product has no effect on ROA in private banks which are listed on the Indonesia Stock Exchange period 2016-2020. Operational Efficiency Ratio has an effect on ROA in private banks which are listed on the Indonesia Stock Exchange period 2016-2020. Loan to Deposit Ratio has no effect on ROA of private banks which are listed on the Indonesia Stock Exchange period 2016-2020. Inflation, Interest Rates, Gross Domestic Product, Operational Efficiency Ratio, and Loan to Deposit Ratio affect the ROA of private bank which are listed on the Indonesia Stock Exchange period 2016-2020.

KEYWORDS:

Inflation, Interest Rates, Gross Domestic Product, Operational Efficiency Ratio, Loan to Deposit Ratio and Return On Assets

REFERENCES:

1) Ambarwati. 2018 . The Effect of Capital-Adequancy Ratio, Non Performing Loan, Loan to Deposit Ratio Against Return On Assets . E-Journal of Unud Management . Vol. 7 No. 5 . ISSN 2302-8912 . Bali : Udayana University.

2) Ayerza. 2018 . Analysis of The Effect of Interest Rates and Inflation on Profitability Banking Listed on Indonesia Stock Exchange Period 2010-2016 . Financial Management Journal . ISSN 2089-3477 . Kwik Kian Gie Institute of Business and Informations.

3) Dewi . 2015 . Analysis of The Effect of Net Interest Margin, Operational Efficiency Ratio, Loan to Deposit Ratio and Non Performing Loan on Profitability (Case Study on Registered National Private Commercial Banks on Indonesia Stock Exchange Period 2009-2013) . E-Journal of University of Eduation Ganesha . University of Education Ganesha.

4) Dodi . 2020 . Analysis of the Effect of Inflation and Gross Domestic Product on Profitability (Case Study on Islamic Commercial Banks in Indonesia) . Indonesian Journal of Strategic Management . Vol 3, August 2020 . e-ISSN 2614-2406 . Kuningan University.

5) Fahmi, Irham . 2015 . Conventional and Syariah Banking Management . Jakarta : Media Discourse Patners.

6) Ghozali, Imam . 2016 . Multivariate Analysis Applications with IBM SPSS 23 Program . Semarang : Diponegoro University Publishing Agency.

7) Hantono . 2017 . Concept of Financial Statement Analysis with Ratio and SPSS Approch . First Printing . Yogyakarta : Depublish (CV. Budi Utama).

8) Harmono . 2018 . Financial Management . Jakarta : Publisher PT. Bumi Aksara.

9) Hasibuan, Malayu . 2015 . Banking Basics . Jakarta : PT. Bumi Aksara.

10) Hendratno and Winarno . 2019 . The Effect of External Variable on Return On Assets (Case Study of Islamic Commercial Banks listed on Indonesia Stock Exchange 2012-2017 Period) . Indonesia Management Journal Vol. 19 (2) . Telkom University.

11) Hery . 2019 . Banking Management. Jakarta : PT. Grasindo.

12) Hikmawati, Fenti . 2019 . Research Methodology . Third Printing . Jakarta : Raja Publisher Grafindo Persada.

13) Indonesian Bankers Association . 2016 . Understanding Bank Business . Jakarta : PT. Gramedia Pustaka Utama.

14) Padanun and Tasik . 2019 . Effect of Statutory Reserves, Net Open Position, Return On Assets Against Capital Adequacy Ratio In Banking Companies That Is Listed On Indonesia Stock Exchange for 2013-2017 Period. EMBA Journal . Vol. 7 No. 4 . October 2019 . Sam Ratulangi University, Manado.

15) Parenrengi and Hendratni . 2018 . The Influence of Third Party Funds, Capital Adequacy and Leading to Bank Profitability . JMSAB Vol. 1 No. 1 . Desember 2018 . Jakarta : Pancasila University.

16) Peling . 2018 . The Effect of Loan to Deposit Ratio, Non Performing Loan and Operational Efficiency Ratio at PT. BPD Bali Period 2009-2016 . E-Jounal of Unud Managament Vol.7 No. 6 . ISSN : 2302-8912 . Udayana University (Unud), Bali, Indonesia.

17) Puspitasari . 2016 . Analysis of the Effect of Non Performing Loan Policy, Loan to Deposit Ratio, Net Open Position, Indonesia Bank Certificate Interest Rate and Inflation Against Return On Assets (Study on National Privaet Commercial Banks Foreign Exchange in Indonesia) . Scientific Solutions Magazine ISSN: 1412-53331 . Vol. 15 No. 3 July 2016 . Semarang University.

18) Sahara . 2013 . Analysis of The Effect of Inflation, Bi Interest Rate, and Gross Domestic Product Against Return On Assets of Islamic Banks in Indonesia . Journal of Management Science . Vol. 1 No. 1 January 2013 . State University of Surabaya.

19) Suciaty . 2019 . The Influence of Capital Adequacy Ratio, Operational Efficiency Ratio, Non Performing Loan, and Loan to Deposit Ratio Against Return On Assets in BUMN Banks listed on Indonesia Stock Exchange . Center of Economic Student Journal . Vol. 2 No. 3 July 2019 . Indonesian Muslim University.

20) Suprapto, Haddy . 2017 . Research Methodology For Scientific Work . First Printing . Yogyakarta : Goysen Publishing.

21) Utomo . 2014 . Analysis of the Effect of Capital Adequacy Ratio, Non Performing Loan, Net Open Position, Net Interest Margin, Operational Efficiency Ratio, Loan to Deposti Ratio, and Indonesia Bank Certificate Interest Rate Against Return On Assets . Proceedings of the Multi-Disciplined National Seminar on Science and Call For Papers Unisbank (SENDI_U) . ISBN : 978-979-3649-81-8 . Stikubank University Semarang.

22) Wibowo . 2013 . Analysis of the Effect of Interest Rate, Inflation, Capital Adequacy Ratio, Operational Efficiency Ratio, Non Performing Financing, ong Profitability Islamic Bank . Diponegoro Journal of Management Vol. 2 No. 2 2013 . ISSN (Online) : 2337-379 . Diponegoro University.

23) Widiyanti . 2015 . The Effect of Capital Asset Quality, Liquidity, and Efficiency Operational Against Profitability at PT. Bank Syariah Mandiri and PT. Bank BRI Syariah . Sriwijaya Journal of Management and Business . Vol. 13 No. 4 December 2015 . Sriwijaya University.

24) Wira . 2015. Stock Fundamental Analysis. Second Edition. Jakarta : Exceed Publisher.

25) https://www.cnbcindonesia.com/market/20210129155709-17-219718/pandemi-laba-bersih-bnicapai-rp-33-t-di-2020