Jurnal Keuangan dan Perbankan
Vol 23, No 2 (2019): April 2019

Liquidity, asset quality, and efficiency to sustainable growth rate for banking at Indonesia Stock Exchange

Syapril Junaidi (Program of Magister Management, Faculty of Economics, Universitas Sriwijaya, Jl. Srijaya Negara, Bukit Lama, Palembang, 30139)
Sulastri Sulastri (Department of Management, Faculty of Economics and Business, Universitas Sriwijaya Jl. Srijaya Negara Bukit Besar, Palembang, 30128)
Isnurhadi Isnurhadi (Department of Management, Faculty of Economics and Business, Universitas Sriwijaya Jl. Srijaya Negara Bukit Besar, Palembang, 30128)
Mohamad Adam (Department of Management, Faculty of Economics, Universitas Sriwijaya Jl. Srijaya Negara, Bukit Lama, Palembang, 30139)



Article Info

Publish Date
30 Apr 2019

Abstract

The focus of the bank to increase profit. However, the increase in profit is not important to focus on because the sustainability of growth is more important. Measure the level of sustainable growth is an important factor that needs attention as a reflection for the performance of a bank. The measurement uses the concept of growth called the Sustainable Growth Rate (SGR). This study aims to provide empirical evidence on the effect of liquidity proxy Loan to Funding Ratio (LFR), asset quality proxy by Non-Performing Loan (NPL) and efficiency proxy by Operating Cost to Operating Income (BOPO) toward SGR. The sampling technique is purposive based on the criteria so that the selected 22 banks with the study period 2012-2107. Unit analysis as much as 132 observations. The analysis of data using panel data regression. The findings of the study showed that LFR, NPL, and BOPO had a significant negative effect on SGR. The implications of research that SGR becomes important as it relates to the bank's strategy to continue to grow and continue in order to expand its business maximally while maintaining internal and external funding sources.JEL Classification: G2, G21DOI: https://doi.org/10.26905/jkdp.v23i2.2699

Copyrights © 2019