Liquidity, Third-Party Fund, and Bank Size on Profitability (Empirical Study on Macro-finance institutions in Bali, Indonesia)

ABSTRACT : Bank Perkreditan Rakyat (BPR) as the macro-financial institutions closest to the public need topay attention to their ability to earn profits (profitability) to maintain public trust. This study aims to examinethe effect of liquidity as measured by the Loan to Deposit Ratio (LDR), third party funds, and bank size onprofitability as measured by Return on Assets (ROA). The research was conducted at BPRs in Bali Provincewith a total sample size of 130 BPRs which were determined by purposive sampling method. The analysistechnique used is multiple linear regression. Based on the test results, it was found that liquidity, third partyfunds, and bank size had a positive and significant effect on profitability. Therefore, to maintain and increaseprofitability, it is expected that BPRs will pay serious attention to liquidity, third-party funds, and bank size.

Keywords: liquidity, third party funds, bank size, profitability