INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE
Vol. 1 No. 3 (2023): December

THE EFFECT OF CAPITAL, LIQUIDITY AND CONSUMER PRICE CHANGES ON FINANCING RISK

Hardiansyah Padli (STIEBI Al-Azhar Bukittinggi, Indonesia)
Rahma Detik Kurningsih (UIN SMDD Bukittinggi, Indonesia)



Article Info

Publish Date
27 Nov 2023

Abstract

This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Financing Deposit to Ratio (FDR) and inflation on Non-Performing Finance (NPF) in the short and long term. By using time series data for the monthly period from 2015-2019 and the Error-Correction Model (ECM) and cointegration approach, it is found that CAR does not have a significant effect on NPF in the short and long term. FDR in the short term does not have a significant effect on NPF, in the long term FDR has a significant effect on NPF. Meanwhile, inflation has a significant effect on NPF both in the short and long term.

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Journal Info

Abbrev

ijle

Publisher

Subject

Economics, Econometrics & Finance

Description

INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE (INJOLE) is a scientific journal that publishes articles in the Business field includes conceptual ideas in the fields of Economics, Accounting, Management, business. The scopes are Human Resource Management, Marketing Management, Financial Management, ...