The Effect of Allowance for Bad Debt Loss to the Level of Profitability

(Case Study in Local Bank Indonesia)

Open access


Local Bank (BPR) as one of the financial institutions in Indonesia in carrying out its activities collecting funds from the public in the form of savings and deposits and channeling back the funds collected through the provision of credit. This study aims to determine, describe and explain the Effect of Allowance for Bad Debt to the Level of Profitability in Subang BPR of Pabuaran Branch. The method used is descriptive method, and testing of the data - the data studied. The data used is data from the financial statements of PD BPR Subang of Pabuaran Branch in 2012 to 2015 with a monthly ratio reports. Any increase in the value of allowance for bad debt (X) of 1% would cause a rise in the value of profitability level in terms of the comparison of operating cost with operating income (Y) of 0.333% and vice versa. The conclusion is the level of allowance for bad debt does not significantly affect the level of profitability as measured by the comparison of operating expenses to operating income.

Bastian, IndradanSuhardjono. 2006. AkuntansiPerbankan. Edisi 1. Jakarta: SalembaEmpat.

Eltivia, Nurafni. 2013. Indonesian Bank’s Efficiency Under Intermediation, Operating and Value Added Approach. Journal of Business and Management 8 (1) : 46-48.

Erivan, K. 2009. Accounting Accreditation Maintenance Fifth Year Report.Saint Joseph’s University. Philadelphia

Francis, pol lim. 2013. Impact of Information Technology on Accounting Systems. Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology 3(2) pp. 93-106

Ghozali Imam.2011. AplikasiAnalisis Multivariate Dengan Program SPSS.Semarang : BP UniversitasDiponegoro

Indonesia Republic. 1998. The enactment of the new Law No. 10 of 1998 concerning amendment to the Law No. 7 of 1992 on banking of conventional banks. State Gazette of the republic of Indonesia.1992, No. 15.The Secretariat of State. Jakarta

Mishra and Junhong. 2010. “Analyzing the relationship between dependent and independent variables in marketing: a comparison of multiple regression with path analysis” Innovative Marketing journal 6(3)

Norradden, Hassan and Alghazi, Hassan. 2013. Annual Economic Review 2012. Maldives Monitory Authority. Maldives

RusydianaAam and Alfarisi Salman. 2015. “The Measurement of Islamic Bank Performance: A Study Using Maqasid Index and Profitability” Global Review of Islamic Economics and Business, Vol. 4 (1) Pp. 001-014

Sartono, Agus, 2001, ManajemenKeuangan: TeoridanAplikasi, BPFE-Yogyakarta Sugiyono. 2014. MetodePenelitianKuantitatif, Kualitatif, danKombinasi (Mixed Methods). Alfabeta Bandung.


Innovative and Economic Research Journal

Journal Information


All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 88 88 29
PDF Downloads 65 65 27