Determinants of capital adequacy ratio bank in Indonesia
Case Study on Banks listed on the Indonesia Stock Exchange
DOI:
https://doi.org/10.32770/jbfem.vol687-96Keywords:
Return On Asset, Capital Adequacy Ratio, Loan to Deposit Ratio, Net Interest Margin, Operating Expense to Operating IncomeAbstract
Banking as a delegate establishment assumes a significant part in the economy and performs well and is sounds. The Capital Adequacy Ratio (CAR) is a measure of how important capital is to banking. OJK has set a new classification for banks based on their core capital. The objective of this research is to ascertain the factors that influence the Capital Adequacy Ratio (CAR) of Indonesian stock exchange-listed banks. The multiple linear regression approach is utilized in this study. The Capital Adequacy Ratio (CAR) is the dependent variable, and the Return on Assets, Loan-to-Deposit Ratio, Net Interest Margin, Operating Expenses, and Operating Income are the independent variables. In view of the exploration results, there is a huge impact of Return On Resources (ROA), Net Interest Edge (NIM), Working Expenses of Working Pay (BOPO), and Credit to Store Proportion (LDR) on the Capital Sufficiency Proportion.
Downloads
References
Abusharbeh, M.T., Triyuwono, I., Ismail, M., & Rahman, F.A. (2013). Determinants of Capital Adequacy Ratoo in Indonesian Islamic Commercial banks. Global Review of Accounting and Finance, 4(1), 159-170.
Actas, R., Acikali.,S, Bakin,B., & Celik, G. (2015). The Determinants of banks capital adequacy ratio : Some evidence from South Eastern European Countries. Journal of Economic and Behavioural Studies, 7(1), 79-88.
Bahtiar, U., Henny, S.L., & Tiara, P. (2019). Determinants of Capital Adequacy Ratio on banking industry : Evidence in IDX. Jurnal Keuangan dan Perbankan, 23(3), 443-453.
Bambang S, Elen P, Yeye S,Sri S, & Udin U. (2019). Determinants of Capital Adequacy Ratio: An Empirical Study on the Conventional Banks in Indonesia. International Journal of Innovation, Creativity and Change, 9(7), 115-127.
Bateni, L., Vakilifard, H., & Asghari, F. (2014). The Influential Factors on Capital Adequacy Ratio in Iranian Banks. International Journal of Economics and Finance, 6, 108-116.
Bukian, N. M. W. P., & Sudiartha, G. M. (2016). Pengaruh Kualitas Aset, Likuiditas, Rentabilitas dan Efisiensi Operasional terhadap Rasio Kecukupan Modal. E-Jurnal Manajemen Unud, 5(2), 1189-1221.
Cahyono, H. S. D., & Anggraeni, A. (2015). Pengaruh likuiditas, kualitas aktiva, sensitivitas pasar, efisiensi, dan profitabilitas terhadap CAR pada bank devisa yang go public. Journal of Business & Banking, 5(1), 113-130.
Dendawijaya, Lukman. (2005). Manajemen Perbankan (2nd ed). Bogor: Ghalia Indonesia.
Dreca, N. (2013). Determinants of Capital Adequacy Ratio in Selected Bosnian Banks. Dumplupinar Universitesi Sosyal Bilimles Dergisi EYI 2013.
Financial Service Authority. POJK No 11/POJK.03/2020. (2020). Concerning national economic stimulus as a countercyclical policy for the impact of the spread of the 2019 coronavirus disease.
Financial Service Authority. POJK No. 11/POJK.03/2016 Pasal 2. (2016). Kewajiban Penyediaan Modal Minimum Bank Umum.
Financial Service Authority (OJK). POJK No. 12/03/2021. (2021). General Banking.
Financial Service Authority (OJK). POJK No. 6/POJK.03/2016. (2016). Grouping of banks based on Commercial Bank Business Groups (BUKU).
Gujarati, N. D. (2012). Dasar-Dasar Ekonometrika. Jakarta: Salemba.
Gumanti, T.A. (2011). Manajemen Investasi. Jakarta: Mitra Wacana Media.
Hafez, H,MM.Examining. (2018). The Relationship between Efficiency and Capital Adequacy Ratio: Islamic versus Conventional banks: An Empirical Evidence on Egyptian Banks. Accounting and Finance Research, 7(2), 232-247.
Iloska, N. (2014). Determinant of Interest Margin, The Case of Macedonia. Journal Of Applied Economics and Business,2(2), 17-36.
Mouss, U. & Ansari, S. (2018). Determinants of Capital Adequacy Ratio: A perspective from Pakistan banking sector. International Journal of Economics, Commerce and Management, 4(7), 247-273.
Moussa, M.A.B. (2015). The Relationship between Capital and Bank Risk: Evidence from Tunisia. International Journal of Economics and Finance,7(4), 223-232.
Peraturan Bank Indonesia No 15/12/PBI Tahun 2013 Tentang Kewajiban Penyediaan Modal Minimum. (2013).
Sri, M., Noer, A.A., Dedi, B.H. (2015). Capital Adequacy of the Banking Industry in Indonesia. Economic Journal of Emerging Makrets, 7(2), 69-77.
Thoa,P.T.X., & Anh, N.N. (2017). The Determinant of Capital Adequacy Ratio: The Case of The Vietnamese Banking system in period 2011-2015. VNU Journal Of Science: Economics and Business, 33(2), 49-58.
Published
How to Cite
Issue
Section
Copyright (c) 2024 Reni Marlina
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Retained Rights/Terms and Conditions of Publication
1. As an author you (or your employer or institution) may do the following:
- make copies (print or electronic) of the article for your own personal use, including for your own classroom teaching use;
- make copies and distribute such copies (including through e-mail) of the article to research colleagues, for the personal use by such colleagues (but not commercially or systematically, e.g. via an e-mail list or list server);
- present the article at a meeting or conference and to distribute copies of the article to the delegates attending such meeting;
- for your employer, if the article is a ‘work for hire’, made within the scope of your employment, your employer may use all or part of the information in the article for other intra-company use (e.g. training);
- retain patent and trademark rights and rights to any process, procedure, or article of manufacture described in the article;
- include the article in full or in part in a thesis or dissertation (provided that this is not to be published commercially);
- use the article or any part thereof in a printed compilation of your works, such as collected writings or lecture notes (subsequent to publication of the article in the journal); and prepare other derivative works, to extend the article into book-length form, or to otherwise re-use portions or excerpts in other works, with full acknowledgement of its original publication in the journal;
- may reproduce or authorize others to reproduce the article, material extracted from the article, or derivative works for the author’s personal use or for company use, provided that the source and the copyright notice are indicated, the copies are not used in any way that implies JBFEM endorsement of a product or service of any employer, and the copies themselves are not offered for sale.
- All copies, print or electronic, or other use of the paper or article must include the appropriate bibliographic citation for the article’s publication in the journal.
2. Requests from third parties
Although authors are permitted to re-use all or portions of the article in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use. Requests for all uses not included above, including the authorization of third parties to reproduce or otherwise use all or part of the article (including figures and tables), should be referred to JBFEM.
3. Author Online Use
- Personal Servers. Authors and/or their employers shall have the right to post the accepted version of articles pre-print version of the article, or revised personal version of the final text of the article (to reflect changes made in the peer review and editing process) on their own personal servers or the servers of their institutions or employers without permission from JBFEM, provided that the posted version includes a prominently displayed JBFEM copyright notice and, when published, a full citation to the original publication, including a link to the article abstract in the journal homepage. Authors shall not post the final, published versions of their papers;
- Classroom or Internal Training Use. An author is expressly permitted to post any portion of the accepted version of his/her own articles on the author’s personal web site or the servers of the author’s institution or company in connection with the author’s teaching, training, or work responsibilities, provided that the appropriate copyright, credit, and reuse notices appear prominently with the posted material. Examples of permitted uses are lecture materials, course packs, e-reserves, conference presentations, or in-house training courses;
- Electronic Preprints. Before submitting an article to an JBFEM, authors frequently post their manuscripts to their own web site, their employer’s site, or to another server that invites constructive comment from colleagues. Upon submission of an article to JBFEM, an author is required to transfer copyright in the article to JBFEM, and the author must update any previously posted version of the article with a prominently displayed JBFEM copyright notice. Upon publication of an article by the JBFEM, the author must replace any previously posted electronic versions of the article with either (1) the full citation to the work with a Digital Object Identifier (DOI) or link to the article abstract in JBFEM homepage, or (2) the accepted version only (not the final, published version), including the JBFEM copyright notice and full citation, with a link to the final, published article in journal homepage.
4. Articles in Press (AiP) service
JBFEM may choose to publish an abstract or portions of the paper before publishing it in the journal. Please contact our secretariat@ssbrj.org immediately if you do not want us to make any such prior publication for any reason, including disclosure of a patentable invention.
5. Author/Employer Rights
If you are employed and prepared the article on a subject within the scope of your employment, the copyright in the article belongs to your employer as a work-for-hire. In that case, JBFEM assumes that when you sign this Form, you are authorized to do so by your employer and that your employer has consented to the transfer of copyright, to the representation and warranty of publication rights, and to all other terms and conditions of this Form. If such authorization and consent has not been given to you, an authorized representative of your employer should sign this Form as the Author.
6. SSBRN Copyright Ownership
It is the formal policy of JBFEM to own the copyrights to all copyrightable material in its technical publications and to the individual contributions contained therein, in order to protect the interests of the JBFEM, its authors and their employers, and, at the same time, to facilitate the appropriate re-use of this material by others. JBFEM distributes its technical publications throughout the world and does so by various means such as hard copy, microfiche, microfilm, and electronic media. It also abstracts and may translate its publications, and articles contained therein, for inclusion in various compendiums, collective works, databases and similar publications.
