EFFECT OF PRODUCTIVE ASSETS EARNINGS AND THIRD PARTY FUNDS ON OPERATIONAL PERFORMANCE LEMBAGA PERKREDITAN DESA (LPD) IN BADUNG DISTRICT

Abstract

LPD's ability to generate maximum profit can not be separated from the assets, wealth, capital and investment owned by LPD is to conduct operational activities so that later can generate added value for LPD that is profit with its own fund called rentability, one of its component is the ratio of BOPO is the ratio of the ratio between operational costs and operating income. The purpose of this study is to determine the effect of growth of productive assets (credit given) and third party funds (growth of savings and deposits) on operational performance (ratio BOPO) in LPD in Badung regency. Population in this research is all of LPD which exist in Badung regency in period 2014 - 2016. The results showed that productive assets (credit given) have a positive and significant effect on operational performance (BOPO ratio), third party funds in the form of saving growth has negative and insignificant effect on operational performance (BOPO ratio), while third party deposits have negative influence and insignificant to operational performance (BOPO ratio). All independent variables consisting of loans (savings and deposits), savings and deposits (third party funds) have significant and significant effect on operational performance (BOPO ratio).