PENGARUH KREDIT MACET PROFITABILITAS PT. BANK RAKYAT INDONESIA (PERSERO) TBK

Abstract

ABSTRACT The banking sector plays a vital role in the financial system by collecting funds from the public and redistributing them through credit facilities. However, the disbursement of credit is often accompanied by risks, one of which is bad loans or non-performing loans (NPL). Bad loans pose significant challenges for banks as they can negatively affect financial performance and profitability. Profitability, measured using Return on Assets (ROA) and Return on Equity (ROE), serves as an essential indicator of a bank's financial health. ROA evaluates the bank's ability to generate net income from its total assets, while ROE measures its capacity to generate profits from shareholders' equity. An increase in bad loans can lead to a decline in both ROA and ROE due to reduced interest income and higher loan loss provisions. This study focuses on PT Bank Rakyat Indonesia (Persero) Tbk, one of the largest banks in Indonesia that channels funds through the People’s Business Credit (KUR) program. Although KUR aims to support small and medium enterprises (SMEs) and drive economic growth, data from 2016 to 2021 reveal a significant increase in bad loans, adversely affecting the bank's profitability. Using a quantitative approach and secondary data from the company's financial statements, this research employs a simple linear regression method to analyze the effect of bad loans on profitability (ROA and ROE). The findings indicate that bad loans have a negative and significant impact on BRI's financial performance. This study underscores the importance of effective credit risk management to maintain stable financial performance. It is hoped that this research can contribute to improving risk management strategies for BRI and serve as a reference for other banks facing similar challenges. Keywords: Banking, Bad Loans, Profitability, ROA, ROE.