The Relationship Between Net Interest Margin and Return on Asset: Empirical Study of Conventional Banking in Indonesia

Purpose of this study is to examine the relationship between net interest margin and return on assets by placing as mediating variables. This uses a sample banks listed Indonesia Stock Exchange for period 2015 2018. Data used panel data, with data analysis using path analysis. Results showed that capital adequacy ratio non-performing loan do not have effect NIM. We find statistically significant negative operating cost/operating income deposit NPL ROA, while CAR, BOPO, LDR ROA. However, NIM positively related The important things from paper sobel test results shown mediates BOPO ROA.
 
 Received: 21 January 2021 / Accepted: 10 March Published: May