The Influence of Banking Risk Level Through Capital Adequacy as the Intervening Variable of BPR Profitability in Badung Bali Regency

  • Ni Nyoman Anita Kusuma Dewi, Wayan Widnyana, Gregorius Paulus Tahu


            Banking is an industry that is subject to risks, mainly because it involves managing funds from the public and redistributing these funds to the public as well as providing other banking services. This study aims to determine the effect of LDR, NPL and BOPO through Capital Adequacy as an intervening variable on the profitability of BPR in Badung Regency. The population used in this study was BPR registered during the 2015-2019 period, the sample in this study amounted to 47 BPR. The data analysis technique used is Patrial Least Square (PLS) using Smart PLS software. The results of this study indicate that LDR and CAR have no effect on ROA, NPL has a positive effect on ROA while BOPO has a negative effect on ROA. LDR and NPL have no effect on CAR while BOPO has a negative effect on CAR. CAR is not able to mediate the effect of LDR, NPL and BOPO on profitability.