Third Party Funds and CAR Impact on Credit Distribution with Non performing Loans as a Moderating Variable

(Pages 1751-1758)

Wastam Wahyu Hidayat*, Sugeng Suroso and Cahyadi Husadha
Lecture-Faculty of Economics and Business Universitas Bhayangkara Jakarta-Indonesia.


The objective of this paper is the determine the effect of third party funds and capital adequacy ratio on lending and non-performing loans as moderating variables in banking companies in Indonesia, the independent variables are, third party funds and capital adequacy ratio, and non-performing loans, while the dependent variable is Credit Distribution, while Non Performing Loan is the Moderating variable. The object of this research is banks listed on the Indonesia Stock Exchange from 2017 to 2020.The number of samples is ten banking based on the purposive sampling technique. The research method uses the Statistical Package for the Social Sciences-21 application to run regression analysis and which includes: descriptive statistics, classical assumption test, multiple linear regression analysis, moderated regression analysis, and hypothesis testing. Research data is normally distributed, free from multicollinearity, heteroscedasticity, and autocorrelation. The results of this study indicate that partially the Third Party Fund variable has a significant and positive influence on Credit Distribution, and the Capital Adequacy Ratio has no effect on Credit Distribution, while the Non-Performance Loan moderating variable can moderate third party funds on Credit Disbursement, on the contrary, the moderating variable Non Performance Loans cannot moderate the Capital Adequacy Ratio to Credit Distribution. Banking credit distribution can be influenced by third-party funds, the Capital Adequacy Ratio does not affect credit distribution. The Independent ability to explain the dependent variable is 49.2%. Meanwhile, the remaining 50.8% is explained by other independent variables outside the model. Third party funds have been very difficult to distribute to the community, because the community has not been able to afford it and what are the funds used for so they can return them. This study provides insight into the effect of third party funds and the capital adequacy ratio on credit distribution.


Third-Party Funds, Capital Adequacy Ratio, Non-Performing Loans, Credit Distribution.

JEL classification:

C33, C38, E21, E22, E26, G20.

How to Cite:

Wastam Wahyu Hidayat, Sugeng Suroso and Cahyadi Husadha. Third Party Funds and CAR Impact on Credit Distribution with Non performing Loans as a Moderating Variable. [ref]: vol.21.2023. available at:

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