Moderating Role of Size in the Effect of Loan to Deposit Ratio and Non Performing Loan toward Banking Financial Performance

摘要

This research is proposed to measure the effect of Loan to Deposit Ratio and Non Performing Loans Ratio toward Financial performance proxied by Return On Assets (ROA) with Size as a moderating variable. The population in this research are commercial banking in Indonesia during 2012-2016 periods. Samples were taken by purposive sampling method and obtained 65 data from 13 banks of Business Group Commercial Banking Bank (BUKU) 3 and 4. Moderating Regression Analysis with absolute difference method was used to examine the research. The result showed that Loan to Deposit Ratio has a positive effect toward financial performance, Non Performing Loan has negative effect toward financial performance, while Size is not moderating both the effect of Loan to Deposit and Non Performing Loan toward financial performance.