This research aims to find out empirical evidences on the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Loan to Asset Ratio (LAR), Size Bank, Operational Efficiency Ratio (OPE), and Net Interest Margin (NIM) on Non-Performing Loans (NPL). Population of the study uses banking sector in Indonesia Stock Exchange for the period of 2012-2018. The sampling method used is purposive sampling. Forty (40) banks meet the criteria to be the sample. The method of analysis in this study is Pooled Data Regression. The model of Pooled Data used is Fixed Effect Model. The research uses secondary data of annual report ratios with 280 observations. The results of partial test show that Size Bank and OPE have positive and significant effect on Non-Performing Loans (NPL). This study also finds that CAR, LDR, LAR, and NIM do not have effect on Non-Performing Loans (NPL). The results of simultaneous test show that CAR, LDR, LAR, Size Bank, OPE, and NIM have significant effect on Non-Performing Loans (NPL).

Keywords : CAR, LDR, LAR, Size Bank, OPE, NIM, NPL.