The Impact of Microenterprise Credit Disbursement on the Profitability of State-Owned Banks

Sovia Sugianti Putri; Ladi Wajuba Perdini Fisabilillah

doi:10.55927/fjmr.v5i8.135

Authors

Sovia Sugianti Putri Universitas Negeri Surabaya
Ladi Wajuba Perdini Fisabilillah Universitas Negeri Surabaya

DOI:

https://doi.org/10.55927/fjmr.v5i8.135

Keywords:

Microenterprise Credit Disbursement, Profitability, Banks

Abstract

This study aims to analyze the effect of People's Business Credit (KUR) distribution on the profitability of state-owned banks for the 2017–2024 period. Profitability is measured using Return on Assets (ROA), with Non-Performing Loans (NPL) and Operating Expenses to Operating Income (BOPO) as control variables. The data used is annual panel data analyzed using panel data regression with a Fixed Effect Model (FEM). The results show that KUR has a negative but insignificant effect on ROA. NPL has a negative and significant effect on ROA, while BOPO has a negative but insignificant effect. Simultaneously, all variables have a significant effect on profitability. These findings indicate that bank profitability is more influenced by credit quality and operational efficiency than by increased KUR distribution.

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