Capital Adequacy Ratio, Net Interest Margin, and Loan to Deposit Ratio on Profitability of Microfinance Institution (Empirical Study at Kintamani, Bali, Indonesia)

ABSTRACT : The purpose of this research is to determine the effect of Capital Adequacy Ratio (CAR), Net Interest Margin (NIM), and Loan to Deposit Ratio (LDR) on Profitability. This research was conducted at the Indonesia Microfinance Institution called LPD. The population was 48 LPDs in Kintamani, and 14 LPDs were taken as samples using the purposive sampling method. In this study, data were obtained from the LPD financial report documents for 2015-2019, collected using the non-participant observation method, and analyzed using multiple linear regression analysis techniques. The results show that partially CAR and NIM have a significant positive effect on profitability, while LDR has a significant negative effect on profitability.
KEYWORDS: Capital Adequacy Ratio, Net Interest Margin, Loan to Deposit Ratio, Profitability