Jurnal Ilmu Manajemen & Ekonomika
Vol 10, No 2 (2018): Jurnal Ilmu Manajemen & Ekonomika, Vol. 10, No.2, June 2018

Analysis of The Effect of Capital, Credit Risk, and Liquidity Risk on Profitability in Banks

Antyo Pracoyo (STIE Indonesia Banking School)
Aulia Imani (STIE Indonesia Banking School)



Article Info

Publish Date
26 Sep 2018

Abstract

This research aims to analyze the influence of bank-specific component to profitability of banking industry within the classification of commercial banking category 3 (Bank Umum Kegiatan Usaha 3, classification based on Central Bank of Indonesia) in the period of 2011 until 2015. The number of sample for this research are 8 banks or Bank Devisa. Independent variable used for this research are based on the ratio of banks. There are Capital measured by Capital Adequacy Ratio, Credit Risk measured by Non Performing Loan, and Liquidity Risk measured by Loan to Deposit Ratio. While dependent variable Profitability measured by Return On Assets. This research analyzed using Eviews 7 program for Panel Data Regression. The result of this research shows that Capital and Liquidity Risk has insignificance effect to Profitability. Meanwhile, Credit Risk has significant effect to Profitability

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Journal Info

Abbrev

jime

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

JIME is a peer-reviewed journal published by INDONESIA BANKING SCHOOL. The journal main aim is to provide an outlet for publishing scholarly research articles which emphasizes the contribution and managerial implication of the findings. JIME invites manuscripts on various topics in banking, business ...