BAITURROCHIMAH
041614353037
Dosen Pembimbing
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 data analytical. This research used 51 samples companies who are currently listed as Middle Level Customer of a state owned Bank which located in Surabaya. Those sample customers choosen are using credit line facility which named Revolving Working Capital Loan - Kredit Modal Kerja Rekening Koran Terbatas (KMK RC Terbatas). 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 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 to be implemented as an adjustment for maximum credit line formula, as it could minimize the gap between the plafond amount defined and credit line realization. However, 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 already used the credit line above 90%. Ideally, Bank does monitoring 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 asset, return on asset, equity to total asset, bank NPL ratio, credit line.
