ANALISIS PENGENDALIAN KUALITAS PRODUK TENUN IKAT PADA SENTRA TENUN HUSAR IDA KELURAHAN UMANEN, KECAMATAN ATAMBUA BARAT, KABUPATEN BELU

Abstract

This study aims to determine the effect of non-performing loans, liquidity, and profitability on capital adequacy at PT. Central Pitoby People's Credit Bank in Kupang City. This study uses a quantitative descriptive approach using banking financial ratios. The data analysis method used in this study is financial ratio analysis consisting of NPL, CR, LDR, NPM, ROA, ROE and CAR. The results of this study indicate: (1) non-performing loans (NPL) affect the capital adequacy ratio (CAR), the greater the NPL, the lower the capital adequacy because problem loans do not provide results or income in increasing capital, (2) liquidity affects capital adequacy ratio (CAR), which means that if the bank is able to channel third party funds in the form of credit to generate income in increasing capital, and (3) profitability affects the capital adequacy ratio (CAR), where when profitability increases, funds will also increase, these funds will used as capital by the bank and will automatically increase the value of the bank's CAR. Suggestions from this study are for bank management to maintain liquidity at safe limits so that bank liquidity conditions remain in a healthy position in order to increase bank profitability to maintain capital stability