The Effect of Risk, Profitability, and Liquidity on Capital Adequacy (original) (raw)
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Economit Journal: Scientific Journal of Accountancy, Management and Finance, 2022
This study aims to determine the effect of the capital adequacy ratio (CAR) and loan to deposit ratio (LDR) on the profitability of banks that go public on the Indonesia Stock Exchange (IDX) for the period 2016 - 2021. The indicators used in this study are: Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and Return On Assets (ROA). One of the Profitability Ratios used as an indicator in this study is Return On Assets (ROA). ROA is a financial ratio to measure the ability of bank management in obtaining overall profit (profit). In this study, ROA is used as the dependent variable, while the Capital Adequacy Ratio and Loan to Deposit Ratio are independent variables. The two independent variables will be analyzed either partially or simultaneously to see whether or not there is an effect on ROA. The data used in this study is the ratio of CAR, LDR and ROA of publicly listed banks on the Indonesia Stock Exchange (IDX) for the period 2016 – 2021 with the number of banks listed...
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This study aims to determine the effect of the variable Capital Adequacy Ratio (CAR), Non Performing Loans (NPL), and Net Interest Margin (NIM) on bank profitability as proxied by Return on Assets (ROA). The population in this study are all banking companies listed on the Indonesia Stock Exchange in the 2014-2018 period. While the samples in this study were 34 companies using the purposive sampling method. This type of research is quantitative with the analysis technique used is a panel data regression technique to determine whether there is a significant influence of one dependent variable (dependent) and more than one independent variable (independent). Based on the research conducted, we found that the Capital Adequacy Ratio and Net Interest Margin have a significant effect on Return on Assets in a positive direction, while the Non Performing Loan variable also has a significant effect on Return on Assets, but with a negative influence.
The Effect Of Capital Adequacy Ratio and Loan To Deposit Ratio on Banking Profitability
BINA BANGSA INTERNATIONAL JOURNAL OF BUSINESS AND MANAGEMENT, 2021
The objective of this research is to analyses the influence of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Size, Operations Expenses to Operations Income (BOPO), toward Profitability of Domestic Banks and Foreign Banks in January 2003 until December 2007. This research also used Chow Test to analyses the influence of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Size, Operations Expenses to Operations Income (BOPO), toward Profitability between State Owned Banks and Foreign Banks. This research used time series data from Bank Indonesia’s three-monthly domestic Banks and Foreign Banks published financial reports. After passed the purposive sampling phase, the number of valid samples is 10 Domestic Banks and 10 Foreign Banks. This research used multiple regression analysis to analyses the data. This research also used Chow Test to analyses the influence of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Size, Operations Expenses to Operations Inc...
International Journal of Economics and Business Administration, 2017
The purpose of this study is to test and determine the Bank's health level consisting of capital adequacy ratio (CAR), net interest margin (NIM), and non performing loans (NPL) partially or simultaneously on bank profitability based on data from the Indonesian Stock Exchange. The population of this study is all state and private banks listed in the Indonesian Stock Exchange (ISE) amounting to 40. Observations are conducted from 2012 to 2016. The results indicate that capital adequacy ratio (CAR) does not have a significant effect on bank profitability. Net interest margin (NIM) improves the growth of bank profitability. This can happen because NIM has a component of net interest in its ratio. Non performing loans (NPL) have a negative effect on bank profitability.
Analysis of The Effect of Capital, Credit Risk, and Liquidity Risk on Profitability in Banks
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This study analyzes the relationship between credit risk and profitability on the capital adequacy ratio (CAR) of commercial banks in Indonesia. The empirical model result shows that credit risk and profitability performance altogether significantly influence the capital adequacy ratio (CAR). Partially, the variables that significantly influence the CAR are the characteristics and complexity of the bank group. This study also suggests that the pace towards the long-term balance is, in general, less than one year. Capital ratio in the banking industry is 8%, indicating the bank has set aside to anticipate the impact of external factors as well as to comply with Bank Indonesia Regulation Number 15/12/PBI/2013.
International Journal of Economics and Financial Research, 2019
This research aims to identify and analyze the effect of Capital Adequacy Ratio (CAR), Operation Expense (BOPO), Net Interest Margin (NIM), and Non Performing Loan (NPL) of the Loan to Deposit Ratio (LDR) of conventional bank on the Indonesia Stock Exchange period 2012 – 2017, either simultaneously or partially. Independent variables used in this study is CAR, BOPO, NIM and NPL, while LDR as the dependent variable.The population in this research is conventional bank listed on the Indonesia Stock Exchange. The sampling technique in this research is purposive sampling. The number of samples in accordance with the prescribed criteria are as many as 35 samples. Based on the result of the research found that the variable CAR influences negatively insignificantly toward LDR, BOPO and NIM influences positively insignificantly toward LDR, while the variable NPL influences positively significantly toward CAR. But simultaneously CAR, BOPO, NIM, and NPL jointly affect the LDR.
Implication of Capital Liquidity to the Profitability of Commercial Banks in Indonesia
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This study aims to determine whether there are implications of liquidity core capital on the profitability of commercial banks book IV in 2012-2016 in Indonesia, other things also to know the magnitude of the influence of capital adequacy and liquidity on bank profitability. The variables to measure bank profitability are Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), and Return on Asset (ROA). The sample of this research is 5 banks in Indonesia from 2012 until 2016. This research method use multiple linear regression. The research hypothesis was tested using F-test statistic and T-test statistic. The analysis shows that CAR is proportional to ROA, but LDR is inversely proportional to ROA. LDR has a significant negative effect (with p-value 0.026) on ROA. If the LDR value is too high, it means that the bank does not have sufficient liquidity to cover its obligations to customers is Third Party Fund (TPF).