Record Details

Capital adequacy of the banking industry in Indonesia

Economic Journal of Emerging Markets

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Field Value
 
Title Capital adequacy of the banking industry in Indonesia
 
Creator Murtiyanti, Sri
Achsani, Noer Azam
Hakim, Dedi Budiman
 
Subject Economic
credit risk, profitability and capital adequacy ratio
G21, G24, G29
 
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.
 
Publisher Universitas Islam Indonesia
 
Contributor
 
Date 2015-10-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion


 
Format application/pdf
 
Identifier https://journal.uii.ac.id/JEP/article/view/4258
10.20885/ejem.vol7.iss2.art1
 
Source Economic Journal of Emerging Markets; Volume 7 Issue 2, 2015; 69-77
2502-180X
2086-3128
 
Language eng
 
Relation https://journal.uii.ac.id/JEP/article/view/4258/3766
 
Coverage developing countries
credit risk and profitability on the capital adequacy ratio (CAR)
capital adequacy ratio (CAR) of commercial banks in Indonesia
 
Rights Copyright (c) 2016 Economic Journal of Emerging Markets