This research aims to determine the effect of non-performing loans, capital adequacy ratios and third party funds on loan credit distribution. The objects of the research are non-performing loans, capital adequacy ratios, third party funds, and credit distribution. The subjects of the research are the financial Services sub- sector companies (banks) that are listedin the Indonesia Stock Exchange (BEI) inthe periods of 2015-2017. The research uses secondary data with quantitative verification method. The samples of the research are 7 companies (111 observations). The hypothesis Tests are carried out by the method of multiple linear regression analysis. The results shows that simultaneously and partially, non-performing loans , capital adequacy ratios , and third-party funds have effects on credit distribution. Banking companies can reduce non-performing loans, also maintain or increase capital they own so that the operational activities in credit distribution can be optimally carried out. Further research is recommended to use more populations as well as longer periods in order to provide better results.
Keywords: Capital Adequacy Ratio, credit distribution, non-forming loans, third party funds
