PENGARUH COST INEFFICIENCY, CAPITALIZATION, DIVERSIFICATION, SIZE, DAN, PROFITABILITY TERHADAP LOAN QUALITY

Abstract

This study aims about loan quality determinants. Loan quality is determinant which used know health of bank. Big
and small of cost inefficiency and CAR can influance loan quality. The fundamental factors which used in this study
cost inefficiency, CAR, diversification, size, and profitability. This study sampled using a pusposive sampling and
obtain data of 123 samples. This study is not free from the normality test but free from the classical assumption
test.These result indicate that cost inefficiency has a negative and significant impact on loan quality. CAR has a
negative an significant impact on loan quality. Diversification has a positive and not significant impact on loan
quality. Size has a negative and not significant impact on loan quality. Profitability has negative and not significant
impact on loan quality.
Key word: Loan quality, cost inefficiency, diversification, size, and profitability