BAITURROCHIMAH
041614353037
Supervisor
Dr. Rahmat Setiawan, SE., MM., CFP.

ABSTRACT

This paper aims to analyze the impact of line age, total assets, return on assets, equity to total assets and the NPL Ratio Toward Credit Line Utilization. Ordinary Least Square is applied as a technique for its analytical data. This research used 51 samples compans who are current listed as middle level customer of a state owned bank which is located in Surabaya. Those sample customers chossocene are using the credit line facility which named revolving working capital loans - Limited Calling Capital Capital Credit (KMK RC Limited). Data Performance Window Used Start from 2016 Until June 2018 and the total data observed per month is about 1,194 data. The results show there are negative significant relationships between line ages, total assets, returns on assets, and equity to total assets to credit line utilization. Howver, there is a positive relationship relationship of NPL Ratio Towards Credit Line Utilization. This research's implications would be worth to be implemented as an adjustment for maximum credit line formula, as it could minimize the gap between the ceiling amount defined and credit line realization. Howver, still it is important to implement an early warning system in order to monitor the performance and maintain the credit quality, especially for the customer who is already used the credit line above 90%. Ideally, Bank does monitor in every 3 months. By doing that, Bank Aims to Suppress the Non-Performing Loan Ratio and as the result, it would restrain the credit default.

Keywords: credit line utilization, line age, total assets, return on assets, equity to total assets, bank NPL ratio, credit line.

Source: http://mm.feb.unair.ac.id/id/kemahasiswaan/article/article-ilmiah/874- Influence asset-and-bank-npl-ratio-to-credit-line-utilization.html