Capital adequacy of the banking industry in Indonesia
Economic Journal of Emerging Markets
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Title |
Capital adequacy of the banking industry in Indonesia
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Creator |
Murtiyanti, Sri
Achsani, Noer Azam Hakim, Dedi Budiman |
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Subject |
Economic
credit risk, profitability and capital adequacy ratio G21, G24, G29 |
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Description |
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.
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Publisher |
Universitas Islam Indonesia
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Contributor |
—
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Date |
2015-10-01
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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Format |
application/pdf
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Identifier |
https://journal.uii.ac.id/JEP/article/view/4258
10.20885/ejem.vol7.iss2.art1 |
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Source |
Economic Journal of Emerging Markets; Volume 7 Issue 2, 2015; 69-77
2502-180X 2086-3128 |
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Language |
eng
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Relation |
https://journal.uii.ac.id/JEP/article/view/4258/3766
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Coverage |
developing countries
credit risk and profitability on the capital adequacy ratio (CAR) capital adequacy ratio (CAR) of commercial banks in Indonesia |
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Rights |
Copyright (c) 2016 Economic Journal of Emerging Markets
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