International Journal Of Science, Technology & Management (IJSTM)
Vol. 1 No. 4 (2020): November 2020

Effect of Profitability Ratios on Banking Capital Adequacy (Study at PT. Bank Rakyat Indonesia Tbk.)

Ade Irma Suryani (Lecturer at the Faculty of Economics and Business, Muhammadiyah University of Jambi)

Article Info

Publish Date
30 Nov 2020

Abstract

The main function of a bank is based on banking law no. 7 of 1992 is as an intermediary institution. As an intermediary institution, banks must be able to maintain profitability ratios and capital adequacy ratios. This is because the capital adequacy ratio of a bank is an important benchmark for consumers or users of these banking services. The focus of this research is to determine how much influence the profitability ratio of a bank, namely the ratio of NIM, OEOI and ROE to the Bank's Capital Adequacy, namely the CAR variable. The research method used is quantitative analysis using multiple linear regression. The results showed that all profitability ratios had a simultaneous effect on bank capital adequacy. Meanwhile, for the individual effect, only the ROE variable has no effect, while the other variables, namely NIM and BOPO, have a partial effect on CAR.

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Journal Info
International Journal Of Science, Technology & Management (IJSTM)
Website

Abbrev

ijstm

Publisher

CV. Inara

Subject

Aerospace Engineering Agriculture, Biological Sciences & Forestry Automotive Engineering Biochemistry, Genetics & Molecular Biology Chemical Engineering, Chemistry & Bioengineering Chemistry Civil Engineering, Building, Construction & Architecture Computer Science & IT Control & Systems Engineering Decision Sciences, Operations Research & Management Earth & Planetary Sciences Education Electrical & Electronics Engineering Energy Engineering Industrial & Manufacturing Engineering Mechanical Engineering Transportation

Description

International Journal of Science, Technology & Management (IJSTM) is an international scholarly refereed research journal which aims to promote the theory and practice of science, technology, innovation, engineering and ...