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THE EFFECT OF BANK SIZE, CAPITAL ADEQUANCY RATIO, OPERATING EXPENSES TO OPERATING INCOME, AND FINANCING TO DEPOSIT RATIO ON FINANCIAL PERFORMANCE WITH NON PERFORMING FINANCING AS A MODERATING VARIABLE AT SHARIA RURAL BANK IN CENTRAL JAVA AND YOGYAKARTA PROVINCE FOR THE PERIOD 2021-2024

Abstract

This study analyzes the effect of Bank Size, Capital Adequacy Ratio, Operating Costs-Operating Income, and Financing-to-Deposit Ratio on Financial Performance with Non-Performing Financing as a Moderating Variable in Sharia Rural Financing Banks in Central Java and Yogyakarta Provinces in 2021-2024. Using 35 samples with multiple linear regression data analysis techniques and Moderated Regression Analysis (MRA). Thus, the results obtained bank size does not affect financial performance, capital adequacy ratio has a significant negative effect on financial performance, operating costs-operating income has a significant positive effect, and financing-to-deposit ratio has a significant negative effect on financial performance. Meanwhile, non-performing financing does not moderate the effect of bank size on financial performance, non-performing financing can moderate the effect of capital adequacy ratio by weakening the effect of capital adequacy ratio on financial performance, non-performing financing can moderate by strengthening the effect of operating costs-operating income on financial performance, and non-performing financing does not moderate the financing-to-deposit ratio on financial performance.