The Effect of Third Party Funds, Capital Adequacy Ratio, Net Interest Margin, and Return on Assets on Credit Distribution with Credit Risk as a Moderating Variable in National Private Commercial Banks Registered with the Financial Services Authority

Abstract

This study aims to determine and analyze the influence of Third Party Funds, Capital Adequacy Ratio, Net Interest Margin, and Return On Assets on credit distribution, with Credit Risk as a moderating variable in National Private Commercial Banks registered with the OJK for the period 2021–2024. A sample of 41 banks was obtained using purposive sampling techniques with secondary data from the financial reports of National Private Commercial Banks. The data analysis techniques used were multiple linear regression and Moderated Regression Analysis (MRA) through the SPSS 25 program. The results of the study indicate that Third-Party Funds, Capital Adequacy Ratio, Net Interest Margin, and Return on Assets have a partial positive and significant effect on credit disbursement. Credit Risk does not moderate the influence of Third-Party Funds and Capital Adequacy Ratio, but it can moderate the influence of Net Interest Margin and Return on Assets on credit disbursement.