The Effect of Retail Prime Lending Rate and Retail Lending on The Profitability of The Indonesian Commercial Banking Industry for The Period 2018-2023

Abstrak

This study aims to determine the effect of retail prime lending rate and retail lending on the profitability of Indonesian commercial banking industry for the period 2018 2023. This study uses quantitative methods and sampling is carried out by using purposive sampling of Bank Companies listed on the Indonesia Stock Exchange in the period 2018-2023 to get a total of 33 banks as research samples. In conducting data analysis, descriptive statistics and panel data regression were applied using Eviews-12 software. The results of panel data testing using the Chow test and Hausman test determined Random Effects Model is the most suitable. Based on descriptive statistics of the ROA, the banking industry has negatively skewed characteristics. From the Regression using the random effect model (REM), the dependent variable, namely retail prime lending rate, amount of retail lending, and the Covid-19 pandemic simultaneously and individually has a significant effect on the dependent variable (ROA).