Pengaruh Kecukupan Modal, Suku Bunga Pinjaman, Perputaran Kas, Pertumbuhan Kredit, Likuiditas terhadap Profitabilitas Lembaga Perkreditan Desa (LPD) di Kecamatan Mengwi

Abstract

Profitability also reflects the extent to which LPDs can optimally utilize their resources to achieve financial and social goals. A good level of profitability indicates the success of LPD in maintaining a balance between operational efficiency, risk management, and customer satisfaction. Additionally, consistent profitability can enhance the competitiveness of LPDs amidst the increasingly tight financial industry competition while strengthening public trust in the institution. Thus, profitability is not only a performance indicator but also a fundamental basis for achieving sustainable long-term growth. This study aims to analyze the influence of capital adequacy, loan interest rates, cash turnover, credit growth, and liquidity on the profitability of LPDs in Mengwi Subdistrict during the 2021-2023 period. The population of this study comprises all actively operating Village Credit Institutions in Mengwi Subdistrict, with a total sample of 37 LPDs determined using the purposive sampling method. The analytical method used to test the hypotheses is multiple linear regression. The results of the study indicate that capital adequacy has a positive effect on profitability. On the other hand, loan interest rates and cash turnover do not affect profitability. Credit growth negatively impacts profitability, while liquidity has no significant effect on the profitability of LPDs in Mengwi Subdistrict. This research is expected to provide insights for LPD managers in formulating more effective strategies to improve profitability, including capital management, credit risk control, and operational policy optimization. Furthermore, the findings can also serve as a reference for regulators in formulating policies that support the sustainability of LPDs in Mengwi Subdistrict.