The Role of Third-Party Funds (DPK) in Moderating the Impact of CAR and NPF on Distributed Financing Growth

Abstract

The growth of disbursed financing (PYD) is a key indicator of the health and performance of Sharia Commercial Banks (BUS). PYD is presumed to be influenced by internal factors such as the Capital Adequacy Ratio (CAR) and Non-Performing Financing (NPF), while Third-Party Funds (DPK) provide the liquidity necessary to support financing disbursement and—theoretically—have the potential to act as a moderating variable in the relationship between CAR, NPF, and PYD. This study aims to analyze the impact of CAR and NPF on PYD growth in Sharia Commercial Banks and to examine the role of DPK as a moderating variable in this relationship.

This study employs a quantitative approach using panel data from Sharia Commercial Banks in Indonesia covering the 2020–2024 period. Secondary data were obtained from the annual financial reports of the respective banks. Data analysis was conducted using EViews 12 software via Moderated Regression Analysis (MRA).

The results indicate that CAR and NPF do not have a positive effect on disbursed financing (PYD) in Sharia Commercial Banks. MRA testing revealed that DPK does not moderate the relationship of CAR and NPF with PYD, as the interaction terms CAR*DPK and NPF*DPK were both statistically insignificant. However, CAR and NPF do have a significant simultaneous effect on PYD, making them determinants that require attention in the management of financing at Sharia Commercial Banks.