Determinants of non-performing loans in Regional Development Banks (BPD) in Indonesia

The country's macroeconomic conditions, whether directly and indirectly will influence the development of financial banking sector. This study aims to determine effect internal company variables consisting BOPO, ROA, money supply, unemployment rate on non-performing loans (NPL) in Indonesian banking, especially Regional Development Banks (BPD). sampling technique used is purposive technique. There are 20 (BPD) that met requirements determined by observation period from 2008-2021. data processing method panel regression. Model selection uses Chow test, Hausman test Langgrange Multiplier (LM Test). Based this, appropriate model Fixed Effect (FEM). Testing classical assumptions FEM shows there a heteroscedasticity problem, then it recovered using Feasible Generalized Least Square (FGLS). results analysis show rates both simultaneously individually have significant positive NPL Banks.