Determinant of Credit Distribution: Indonesian Banking Evidence

This paper discusses empirical research of the effect of bank internal variables, that is calculated from the ratio of a bank's soundness, such as capital adequacy ratio (CAR), loan to deposit (LDR), non performing loan (NPL), and net interest margin (NIM),in granting credit. This research uses a sample of 24 commercial banks that is listed in Indonesian Capital Market for the fiscal year ended in December 31, 2014 to 2017.The total data observed is 96. The data is obtained from Indonesian Capital Market Directory, Indonesian Stock Exchange database, and company annual reports. Analytical techniques used was multiple linear regression using OLS (Ordinary Least Square) and processed by the SPSS program 15. Result obtained from the hypothesis test is the variable capital adequacy ratio (CAR) and the net interest margin (NIM) has positive significant influence on credit distribution. Variable loan to deposit ratio (LDR) is positive but doesn't have significant effect on credit distribution. Variables of nonperforming loans(NPL)isnegativeandhavesignificanteffectoncreditdistribution