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 companies who are currently listed as Middle Level Customers of a state owned Bank which is located in Surabaya. Those sample customers choosen are using a credit line facility which is named Revolving Working Capital Loan - Limited Current Account Working Capital Credit (KMK RC Limited). The performance window data used starts 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 Age, Total Assets, Return on Assets, and Equity to Total Assets to Credit Line Utilization. However, there is a positive significant relationship of NPL Ratio towards Credit Line Utilization. This research's implication would be worth implementing as an adjustment for maximum credit line formula, as it could minimize the gap between the ceiling amount determined and credit line realization. However, it is still important to implement an early warning system in order to monitor the performance and maintain the credit quality, especially for customers who have already used the credit line above 90%. Ideally, the Bank does monitoring every 3 months. By doing that, the 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
