Journal articles on the topic 'Bank capital'
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Sang Tang My and Anh Nguyen Quoc. "BANK CAPITAL AND BANK PROFITABILITY OF VIETNAM COMMERCIAL BANKS." International Journal of Business and Society 24, no. 1 (April 7, 2023): 56–65. http://dx.doi.org/10.33736/ijbs.5601.2023.
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The commercial banking system plays an important role in providing capital to businesses and other organizations, so bank capital receives great attention from many different subjects in the economy. This position is even more crucial for Vietnam, a developing country because the corporate bond market is relatively small in comparison to the size of the economy. As a result, commercial bank business efficiency is a problem that requires attention since it has a direct impact on the efficiency with which capital is provided to firms, as well as the market's stability. The research study concerning the effect of bank capital on bank profitability was conducted using data gathered from 22 Vietnam commercial banks from 2011 to 2020, using Pooled OLS, FEM, REM, and GMM methodologies. The results show that bank capital has a negative relationship with profitability. Bank profitability is also positively affected by bank size, credit risk, credit growth, and capital adequacy ratio. This study offers a new understanding of the relationship between bank capital, and bank profitability in Vietnam and proposed implications for Vietnam commercial banks' governance solutions, a country whose financial system depends mainly on banks, has transformed its capital management direction according to Basel 2 guidelines and is preparing for Basel 3 standards.
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Febrianto, Hendra Galuh, and Amalia Indah Fitriana. "MENILAI TINGKAT KESEHATAN BANK DENGAN ANALISIS METODE RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNINGS, CAPITAL PADA BANK SYARIAH DI INDONESIA." Islamic Banking : Jurnal Pemikiran dan Pengembangan Perbankan Syariah 6, no. 1 (August 27, 2020): 139–60. http://dx.doi.org/10.36908/isbank.v6i1.135.
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ABSTRACT
In the banking world of soundness, banks are very important for the formation of trust. Trust and loyalty to banks is a very helpful factor and makes it easier for bank management to develop good business strategies. Bank Soundness Levels are results issued by banks which are carried out on bank risk and performance (Bank Indonesia Regulation Number: 13/1 / PBI / 2011). If more than conventional banking with Islamic banking, conventional banking finance is better than Islamic banking. This is blessed with poor sharia banking (corporate governance) management. In order to be able to carry out its functions properly, banks must have sufficient capital, ensure the quality of their assets properly, be well managed and managed based on the principle of prudence, generate sufficient profits to maintain an increase, and support liquidity so that it can be adjusted to their needs. Therefore banks are required to be able to achieve and maintain a good and optimal level of performance, because the level of bank performance can increase the level of trust and loyalty needed by the wider community to use the products, services and financial activities of the bank.
The purpose of this study is for advanced financial research with analysis of Risk Profiles (Risk Profiles), Good Corporate Governance (GCG), Profitability (Income), and Capital (Capital) which is hereinafter abbreviated as RGEC with the final aim of research for the needs of Sharia banking management in accordance with the latest Bank Indonesia and OJK regulations.
This type of research uses descriptive research proposed in the RGEC analysis (Risk Profile, Good Corporate Governance, Income, and Capital) at Islamic Banks in Indonesia. from 2013 to 2017.
Keywords: Risk Profile, Good Corporate Governance, Income, Capital, Bank Soundness
ABSTRAK
Dalam dunia perbankan tingkat kesehatan bank sangat penting bagi pembentukan kepercayaan. Kepercayaan dan loyalitas nasabah terhadap bank merupakan faktor yang sangat membantu dan mempermudah pihak manajemen bank untuk menyusun strategi bisnis yang baik. Tingkat Kesehatan Bank adalah hasil penilaian kondisi bank yang dilakukan terhadap risiko dan kinerja bank (Peraturan Bank Indonesia Nomor: 13/1/PBI/2011). Jika dibanding antara perbankan konvensional dengan perbankan syariah, kinerja keuangan perbankan konvensional lebih baik daripada perbankan syariah. Hal ini dikarena tatakelola (good corporate governance) perbankan syariah yang masih buruk. Agar dapat menjalankan fungsinya dengan baik, bank harus mempunyai modal yang cukup, menjaga kualitas asetnya dengan baik, dikelola dengan baik dan dioperasikan berdasarkan prinsip kehati-hatian, menghasilkan keuntungan yang cukup untuk mempertahankan kelangsungan usahanya, serta memelihara likuiditasnya sehingga dapat memenuhi kewajibannya. Oleh karena itu bank dituntut untuk bisa mencapai dan mempertahankan tingkat kinerja yang baik dan optimal, karena tingkat kinerja bank yang baik dapat meningkatkan kepercayaan dan loyalitas nasabah maupun masyarakat luas untuk menggunakan produk, jasa dan aktivitas keuangan dari bank tersebut.
Tujuan penelitian ini adalah untuk menilai tingkat kesehatan keuangan dengan analisis Profil Risiko (Risk Profile), Good Corporate Governance (GCG), Rentabilitas (Earnings), dan Permodalan (Capital) yang selanjutnya disingkat RGEC dengan tujuan akhir merekomendasikan kebijakan untuk memperbaiki manajemen perbankan Syariah yang sesuai peraturan Bank Indonesia dan OJK yang terbaru.
Jenis penelitian ini menggunakan penelitian deskriptif yang berfokus pada analisis RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) pada Bank Syariah di Indonesia. dari tahun 2013 sampai 2017.
Kata kunci: Risk Profile, Good Corporate Governance, Earnings, Capital, Tingkat Kesehatan Bank
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Salami, Abdulai Agbaje, and Ahmad Bukola Uthman. "Bank Capital, Operating Efficiency, and Corporate Performance in Nigeria." Acta Universitatis Sapientiae, Economics and Business 6, no. 1 (December 1, 2018): 61–87. http://dx.doi.org/10.1515/eb-2018-0004.
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Abstract This study examines the impact of bank capital and operating efficiency on the Nigerian deposit money bank financial performance with a view to resolving risk-based and non-risk-based capitals’ dichotomy existing in the bank literature. Using bank-specific data obtained from the annual reports and accounts of 15 banks listed on the Nigerian Stock Exchange between 2012 and 2015, the panel data regression analyses revealed the superiority of standard capital ratio of equity-to-total-assets, a non-risk-based capital, over other measures. While all measures, both risk-based and non-risk-based capitals, showed significantly positive effects on bank performance as measured by return-on-asset, mixed results were obtained from other indicators: return-on-equity and net-interest-margin. Overall, only equity-to-total-assets influenced all adopted performance indicators positively. It was also found that operating efficiency measured by cost-to-income ratio had negative impact on bank performance, but on the average it appeared too high. Thus, incorporating the standard capital ratio of equity-to-total assets into regulatory regime by the banks’ regulator is recommended to ensure its relevance is not overshadowed.
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Salami, Abdulai Agbaje, and Ahmad Bukola Uthman. "Bank Capital, Operating Efficiency, and Corporate Performance in Nigeria." Acta Universitatis Sapientiae, Economics and Business 6, no. 1 (December 1, 2018): 61–87. http://dx.doi.org/10.1515/auseb-2018-0004.
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AbstractThis study examines the impact of bank capital and operating efficiency on the Nigerian deposit money bank financial performance with a view to resolving risk-based and non-risk-based capitals’ dichotomy existing in the bank literature. Using bank-specific data obtained from the annual reports and accounts of 15 banks listed on the Nigerian Stock Exchange between 2012 and 2015, the panel data regression analyses revealed the superiority of standard capital ratio of equity-to-total-assets, a non-risk-based capital, over other measures. While all measures, both risk-based and non-risk-based capitals, showed significantly positive effects on bank performance as measured by return-on-asset, mixed results were obtained from other indicators: return-on-equity and net-interest-margin. Overall, only equity-to-total-assets influenced all adopted performance indicators positively. It was also found that operating efficiency measured by cost-to-income ratio had negative impact on bank performance, but on the average it appeared too high. Thus, incorporating the standard capital ratio of equity-to-total assets into regulatory regime by the banks’ regulator is recommended to ensure its relevance is not overshadowed.
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Teja, Adrian. "Effect of Corporate and Dividend Income Tax Rates on Bank Capital." International Research Journal of Business Studies 15, no. 2 (November 11, 2022): 167–76. http://dx.doi.org/10.21632/irjbs.15.2.167-176.
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The study uses quantitative method to estimate the effect of Corporate- and Dividend-Income-Tax rates on Total-Bank-Capital, Tier-1-Bank-Capital, and Tier-2-Bank-Capital ratios. The samples are banks from ASEAN-4 countries, i.e. Indonesia, Malaysia, The Philippines, and Thailand, taken in 2020. The effects of Corporate- and Dividend-Income-Tax on Total-Bank-Capital, Tier- 1-Bank-Capital, and Tier-2-Bank-Capital ratios were analyzed using cross-section regression. We placed Total-Bank-Capital, Tier-1-Bank-Capital, and Tier-2-Bank-Capital ratios as the dependent variable. Corporate- and DividendIncome-Tax rates were placed as the independent variable. Both Corporate and Dividend-Income-Tax rates are statistically significant and positively affect the Total-Bank-Capital and Tier-1-Bank-Capital. The findings suggest that high Corporate- and Dividend-Income-Tax rates reduce banks’ significant risks. Corporate-Income-Tax rates and negatively affect Tier-2-Bank-Capital. The finding suggests that lower tax rates will induce banks to increase their Tier-2- Bank-Capital ratio. However, the effect of Dividend-Income-Tax rates on Tier-2- Bank-Capital is not statistically significant.
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Sari, Nurshadrina Kartika, Isti Fadah, and Hari Sukarno. "DETERMINAN STRUKTUR MODAL BANK." EKUITAS (Jurnal Ekonomi dan Keuangan) 17, no. 1 (February 6, 2017): 71. http://dx.doi.org/10.24034/j25485024.y2013.v17.i1.2227.
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Banks are financial institutions how have an important part for the economy of a country. The bank’s main purposes are to collected funds from the public and distributed it back to them in credit loans. The biggest of public trusted to the bank, will make the bigger bank’s liabilities to their funds. This research examines determinants of bank capital structure, including profitability, liquidity, business risk, dividend, management ownership, institutional ownership and bank’s age. The samples in this research are 70 banks in Indonesian period 2006 until 2011, where analyzed with multiple linier regression test with dummy variable to know which of the seven variables are the determinans of the bank capital structures that use DER (Debt to Equity Ratio) to measure it. The result of this research find that determinants of bank capital structures is liquidity, institutional ownership and bank’s age, but profitability, business risk, dividend and management ownership are not the determinants of bank capital structures period 2006 until 2011.
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Ahmed, Muntazar Bashir. "KASB Bank Limited: Capital Shortage." Asian Journal of Management Cases 15, no. 1 (March 2018): 1–22. http://dx.doi.org/10.1177/0972820117744685.
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KASB Bank Limited was a small sized bank in Pakistan. Its operations did not generate sufficient profits and over the years it was unable to meet the regulatory capital as specified by the State Bank of Pakistan. The bank’s loan portfolio was infected with poor quality borrowers and this resulted in very high non performing loans which required loan loss provisions. The bank sponsor had other group companies which the KASB Bank acquired in order to meet the capital needs. The State Bank as part of compliance with BASEL rules required higher amounts of capital to protect the banking sector and had allowed KASB Bank extra time to meet the capital needs. However, the State Bank ultimately used its regulatory authority to put the bank under its supervision. The State Bank placed KASB Bank under a moratoriam so that the KASB Bank customer deposits were frozen and only withdrawls up to PKR300,000 were allowed from each account. The State Bank wanted another bank to take over the KASB Bank operations and allowed other interested banks to conduct due diligence so as to review the financial status of the bank with a view to take over the troubled bank. There were very few banks interested in taking over because KASB Bank had negative equity estimated at PKR12 to PKR14 billion. The State Bank in order to protect the interests of the 150,000 depositors and the stability of the banking system gave a concessionary loan of PKR20 billion as part of the scheme of amalgamation of KASB Bank with Bank Islami.
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Stepanenko, Sergii, and Alina Rychyk. "THEORETICAL FUNDAMENTALS OF BANKING CAPITAL FORMATION." Ukrainian Journal of Applied Economics 5, no. 3 (September 7, 2020): 92–99. http://dx.doi.org/10.36887/2415-8453-2020-3-9.
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Introduction. Banks are an important component of the country's economy. Thanks to banks there is an accumulation, storage, redistribution of funds between participants of market relations. The efficiency of banks depends on the formation and use of bank capital. Bank capital is of local, regional and national importance – it ensures the profitability of an individual bank, affects the development of the region and the investment attractiveness of the country. The purpose of the research is to develop a theoretical and methodological basis for assessing the bank's capital, taking into account the impact of trends in an unstable economy. Results. The expediency of taking into account the issue of bank capital valuation in the bank's activity is substantiated. The essence of bank capital is determined. The authorized, regulatory and prescribed types of bank capital are described. The structure and functions (protective, ensuring the operational activities of the bank, regulatory) of bank capital are defined. The influence of factors on the amount of bank capital is substantiated. The standards by which the capital adequacy of banks is checked are described. The main approaches to the implementation of the mechanism of banks' equity formation are outlined. Theoretical and methodological approaches to the assessment of bank capital are generalized, the method of calculation is outlined, their conditions of use, shortcomings and information source are highlighted. The connection between the assessment of bank capital and the implementation of the process of its formation is substantiated. The scientific and methodological basis for such an assessment is described. The need to improve the methodological tools for assessing the bank's capital has been proved. Conclusions. The existing organizational and methodological support for the assessment of bank capital does not fully meet current trends and needs some improvement. Objectivity in the assessment of bank capital is an important element in the process of bank capital formation. Adaptation of international experience in the assessment of the bank's capital will contribute to the development of the domestic financial market as a whole. Key words: bank, bank capital, estimation, formation of bank capital, bank equity, principles, methods.
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Ahmad, Rubi, and Mohamed Albaity. "The Determinants of Bank Capital for East Asian Countries." Global Business Review 20, no. 6 (July 24, 2019): 1311–23. http://dx.doi.org/10.1177/0972150919848915.
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This study identifies the determinants of bank capital ratios in eight East Asian countries using unbalanced panel data of 278 banks from 2004 to 2014. The results indicate that bank capital decisions are significantly driven by management quality, liquidity, leverage and bank size, as well as bank regulations, indicating that the determinants of bank capital are consistent with past findings for US and European banks. The capital adequacy ratios in East Asia are not linked with banks’ risk appetite. Given that our results show that bank managers generally react negatively to capital requirements, capital regulations should be followed with more rigorous supervisory oversight, to reduce the adverse effects of high capital requirements on bank safety.
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Abbas, Faisal, Shahid Iqbal, and Bilal Aziz. "The Role of Bank Liquidity and Bank Risk in Determining Bank Capital: Empirical Analysis of Asian Banking Industry." Review of Pacific Basin Financial Markets and Policies 23, no. 03 (August 3, 2020): 2050020. http://dx.doi.org/10.1142/s0219091520500204.
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This study provides new insights about how bank liquidity and bank risk have influenced the capital ratio of commercial banks operating in Asia’s emerging economies after the financial crisis 2007–2008. The data were collected for 377 banks from the Bankscope database covering the period of eight years between 2010 and 2017. The linear regression panel-corrected standard errors approach is used to find consistent estimators. The results of the overall sample and medium-sized banks regression revealed a positive relationship between bank liquidity and bank capital ratio, whereas the liquidity and bank capital ratio of large commercial banks have a negative association. The impact of liquidity on bank capital ratio is positive but insignificant in the case of smaller banks. The impact of bank risk on bank capital ratio is negative in the case of smaller and medium-sized banks, whereas the association is found positive in the case of larger and overall banks data results in short run, other things remain unchanged. The findings have valued information for researchers, analysts, managers, and policymakers.
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Sudaryanti, Dedeh Sri, Nana Sahroni, and Ane Kurniawati. "ANALISA KINERJA KEUANGAN DAN PENGARUHNYA TERHADAP KEMAMPUAN PENYALURAN KREDIT PADA BANK PERSERO DI INDONESIA." BanKu: Jurnal Perbankan dan Keuangan 2, no. 1 (March 1, 2021): 1–13. http://dx.doi.org/10.37058/banku.v2i1.2768.
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ABSTRACTThis study used to aim at analyzing financial performance proxied by variable third party funds (DPK), non-performing loans (NPLs), and capital adequacy ratios (CAR) on the ability of bank lending. The study was conducted at a Persero bank in Indonesia in the period 2010-2017. Panel data regression analysis tool is used to analyze the effect of DPK, NPL, and CAR on the ability of bank lending. The results of the study found that DPK had a positive effect on bank lending. NPL has a negative effect on bank lending. NPLs reflect credit risk, the higher the level of NPL, the greater the credit risk borne by the bank. CAR has a positive effect on bank lending. There is a positive influence between CAR and the ability to extend credit to banks. Every increase in CAR percentage will increase the ability of bank lending. If the bank has capital above 8% or more, then the bank can be said to have sufficient capital to distribute credit, and shows the better banks in providing capital to the public so that it will increase the ability of banks in lending.Keywords: financial performance, credit; funding; non performing loan; capital adequacy ratio. ABSTRAKPenelitian ini bertujuan untuk menganalisis kinerja keuangan yang diproksikan dengan variabel dana pihak ketiga (DPK), non performing loan (NPL), dan capital adequacy ratio (CAR) terhadap kemampuan penyaluran kredit bank. Penelitian dilakukan pada bank Persero di Indonesia periode tahun 2010-2017. Alat analisis regresi data panel digunakan untuk menganalisis pengaruh DPK, NPL, dan CAR terhadap kemampuan penyaluran kredit bank. Hasil penelitian menemukan bukti DPK berpengaruh positif terhadap penyaluran kredit bank. NPL berpengaruh negatif terhadap penyaluran kredit bank. NPL mencerminkan risiko kredit, semakin tinggi tingkat NPL maka semakin besar pula risiko kredit yang ditanggung oleh pihak bank. CAR berpengaruh positif terhadap penyaluran kredit bank. Terdapat pengaruh positif antara CAR dengan kemampuan penyaluran kredit pada bank. Setiap naik prosentase CAR akan meningkatkan kemampuan penyaluran kredit bank. Jika bank memiliki modal diatas 8% atau lebih, maka bank dapat dikatakan memiliki kecukupan modal untuk menyalurkan kreditnya, dan menunjukan semakin baik bank dalam menyediakan modal bagi masyarakat sehingga akan meningkatkan kemampuan bank dalam penyaluran kredit.Kata Kunci: kinerja keuangan; kredit; dana pihak ketiga; non performing loan; capital adequacy ratio
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Herwinanto, Erfan. "PERBANDINGAN KINERJA BANK SWASTA DI INDONESIA BERDASARKAN PEMENUHAN MODAL MINIMUM." Jurnal Riset Akuntansi dan Keuangan 11, no. 2 (June 7, 2015): 129. http://dx.doi.org/10.21460/jrak.2015.112.13.
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This study aims at revealing the bank capital influence its operational activities. This study employssecondary datum which is obtained from bank indonesia. From the existing data banks, 171 financialstatement of banks are used for sample from 2005 to 2007, which breakdown in 2005 consist 62, 2006consist 56, 2007 consist 53 financial statement. In order to measure banks activities, CAMELScomponent is conducted in accordance with bank indonesia regulations. Based on the analysis at allbanks on 2005-2007, it revals that KPPM component, capital component, NIM component, betweenbank and its capital below minimum and bank and its capital above, the difference is not found.Meanwhile differences are found when ROE component, BOPO component and LDR component,between bank and its capital below minimum and bank its capital above minimum.Keywords: minimum capital, bank activity, CAMELS
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Bhat, Gauri, and Hemang A. Desai. "Bank Capital and Loan Monitoring." Accounting Review 95, no. 3 (May 1, 2020): 85–114. http://dx.doi.org/10.2308/accr-52587.
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ABSTRACT This paper empirically examines the association between bank capital and banks' monitoring effort. We use four proxies to measure the unobservable monitoring effort. Two of the proxies are based on loan quality (ex post outcomes of monitoring effort). The other two proxies are based on salary expense (ex ante proxies intended to capture the quality and quantity of labor input into monitoring effort). Using a bank and time fixed effects estimation, we find a positive association between bank capital and each of our measures of monitoring effort. We find that this association is more pronounced for smaller banks and banks that engage in higher levels of relationship lending. Numerous additional tests and robustness checks, including matched sample analysis and instrumental variable approach to address endogeneity, confirm our main findings. Overall, our evidence is consistent with the prediction in Mehran and Thakor (2011) that banks that keep higher capital monitor more. JEL Classifications: G21; G32; M41.
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Ibrahim, Sardar SH. "Impacts of Capital Structure on Bank Performance." Koya University Journal of Humanities and Social Sciences 2, no. 1 (June 20, 2019): 118–23. http://dx.doi.org/10.14500/kujhss.v2n1y2019.pp118-123.
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Purpose: This study studies the effect of capital structure on the performance of some Iraqi private banks. Six banks based in Iraq namely: Babylon Bank, Investment Bank, Credit Bank, Commercial Bank, Sharq Al-Awsat Bank, and Baghdad Bank were selected for the present study over the period 2005 to 2015. Methodology: Annual reports of these banks were studied and relevant ratios were calculated. The variables that were identified as independent for capital structure were total debt to capital, bank size and asset growth, while return on assets and return on equity were considered to be dependent variables for bank performance. The panel Least Square model has been used to examine the impact of capital structure on bank performance. Findings: Outcomes indicate that none of the independent variables has a significant impact on return on assets (ROA), while total debt to capital (TDC) has a positive impact on return on equity (ROE). Reduction: Depending on this result, Iraqi banks should keep sufficient amount of capital to avoid any financial risks and increase the probability of survival.
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Ramadhani, Nabila Cahya, and Nardi Sunardi. "Pengaruh Kredit Bermasalah dan Kecukupan Modal Terhadap Nilai Perusahaan Pada Bank BUMN (Bank Persero)." Jurnal SEKURITAS (Saham, Ekonomi, Keuangan dan Investasi) 6, no. 3 (May 1, 2023): 250. http://dx.doi.org/10.32493/skt.v6i3.30128.
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Penelitian ini bertujuan untuk menguji pengaruh kredit bermasalah yang di proksikan oleh Non-Performing Loan dan kecukupan modal yang di proksikan oleh Capital Adequacy Ratio terhadap nilai perusahaan yang di proksikan oleh Price to Book Value Pada Bank BUMN (Bank Persero) yang terdaftar pada Bursa Efek Indonesia Periode 2017-2021 baik secara parsial maupun simultan. Penelitian ini dilakukan pada bank BUMN (Bank Persero) yang terdaftar di Bursa Efek Indonesia (BEI) periode 2017-2021. Hasil menunjukkan bahwa secara parsial kredit bermasalah berpengaruh namun tidak signifikan terhadap nilai perusahaan. kecukupan modal yang berpengaruh tidak signifikan terhadap nilai perusahaan, dan secara simultan kredit bermasalah dan kecukupan modal berpengaruh signifikan terhadap nilai perusahaan. This study aims to examine the effect of problem loans proxied by Non-Performing Loans and capital adequacy proxied by Capital Adequacy Ratio on firm value proxied by Price to Book Value at BUMN Banks (Persero Banks) listed on the Indonesia Stock Exchange Period 2017-2021 either partially or simultaneously. This research was conducted at state-owned banks (Persero Bank) listed on the Indonesia Stock Exchange (IDX) for the 2017-2021 period. The results show that partially non-performing loans have not significant effect on the firm value. Capital adequacy has not significant effect on the firm value and simultaneously non-performing loans and capital adequacy has significant effect the firm value.
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Agustin, Dwi Puspita. "ANALISIS TINGKAT KESEHATAN BANK DENGAN MENGGUNAKAN METODE RGEC PADA BANK BUMN PERIODE 2017-2020." BALANCING: Accountancy Journal 1, no. 2 (October 4, 2021): 77–90. http://dx.doi.org/10.53990/bjpsa.v1i2.127.
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Bank as an intermediary institution that is trusted to collect funds and channel them back to the community. In its activities, the bank must demonstrate the level of soundness as required. The bank soundness assessment system is regulated in 13/1/PBI/2011, namely Risk Profile, Good Corporate Governance, Earning and Capital (RGEC). This study aims to analyze the comparison of the soundness of state-owned banks and to determine the assessment of the soundness of banks based on the Risk Profile factor with the ratio of Non Performing Loans (NPL), Loan to Deposit Ratio (LDR), Profitability with the ratio of Return on Assets (ROA) and Capital with Capital Adequacy Ratio (CAR). This research methodology uses secondary data using a period of 4 years, namely 2017-2020. In this study the sample was taken by purposive sampling. In the results of the One Way - Analysis of Variance test on the risk profile and profitability factors, there are significant differences, while the capital factors of the four banks have no significant differences
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Puspita Agustin, Dwi. "ANALISIS TINGKAT KESEHATAN BANK DENGAN MENGGUNAKAN METODE RGEC PADA BANK BUMN PERIODE 2017-2020." BALANCING : Accountancy Journal 1, no. 2 (August 2, 2021): 57–71. http://dx.doi.org/10.53990/balancing.v1i2.120.
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Bank as an intermediary institution that is trusted to collect funds and channel them back to the community. In its activities, the bank must demonstrate the level of soundness as required. The bank soundness assessment system is regulated in 13/1/PBI/2011, namely Risk Profile, Good Corporate Governance, Earning and Capital (RGEC). This study aims to analyze the comparison of the soundness of state-owned banks and to determine the assessment of the soundness of banks based on the Risk Profile factor with the ratio of Non Performing Loans (NPL), Loan to Deposit Ratio (LDR), Profitability with the ratio of Return on Assets (ROA) and Capital with Capital Adequacy Ratio (CAR). This research methodology uses secondary data using a period of 4 years, namely 2017-2020. In this study the sample was taken by purposive sampling. In the results of the One Way - Analysis of Variance test on the risk profile and profitability factors, there are significant differences, while the capital factors of the four banks have no significant differences
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Siregar, Zulkifli Musannip Efendi. "STRATEGI HUMAN CAPITAL BANK MANDIRI." ECOBISMA (JURNAL EKONOMI, BISNIS DAN MANAJEMEN) 1, no. 2 (September 18, 2019): 11–18. http://dx.doi.org/10.36987/ecobi.v1i2.21.
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Tujuan dari penulisanpaper ini adalah untuk mengetahui strategi human capital yang dilakukan oleh Bank Mandiri. Bank Mandiri sebagai perusahaan nasional yang memiliki reputasi yang sangat bagus dan berkinerja unggul menyadari betul bahwa human capital merupakan aset penting sehingga harus dikelola dengan baik. Strategi human capital Bank Mandiri tercantum dalam Human Capital Management Framework Bank Mandiri yaitu : 1) Organization Development, yaitu pengembangan organisasi yang efisien, efektif dan bersaing, 2) Capacity Fulfillment, yaitu pemenuhan Human Capital yang handal baik yang bersumber dari internal maupun eksternal, 3) Learning & Development, yaitu pengembangan & pembelajaran Human Capital untuk mendukung kebutuhan bisnis, 4) Employee Relations, yaitu membangun engagement dan hubungan industrial yang harmonis, 5) Rewards & Performance Management, yaitu pengelolaan kinerja yang prima dan sistem imbalan yang kompetitif, dan 6) Talent dan Succession Management, yaitu penyediaan leadership pipeline dan pengelolaan suksesi.
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Carsamer, Emmanuel, Anthony Abbam, and Yaw N. Queku. "Bank capital, liquidity and risk in Ghana." Journal of Financial Regulation and Compliance 30, no. 2 (October 24, 2021): 149–66. http://dx.doi.org/10.1108/jfrc-12-2020-0117.
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Purpose Capital, risk and liquidity are the vitality of the banking industry, which can improve the efficiency of banking and promote the efficiency of resource allocation. The purpose of this study is to examine how Basel III new liquidity ratios affect bank capital and risk adjustments and how banks respond to the new liquidity rules. Design/methodology/approach The authors adopted the system generalized method of moments (GMM) to examine how Basel III new liquidity ratios affect bank capital and risk adjustments and how banks respond to the new liquidity rules. Based on the call reports data from banks, GMM was used to test the hypotheses that new liquidity ratios affect bank capital and risk adjustments, as well as how banks respond to the regulation. Findings The results indicate banks targeted capital, risk and liquidity and simultaneously coordinate short-term adjustments in capital and risk. New liquidity measures enable banks to coordinate risk and liquidity decisions. Short-term adjustments in new liquidity rules inversely impact bank capital. Short-term adjustments in new liquidity rules inversely impact bank capital and capital adjustments adversely affect changes in the liquidity coverage ratio (LCR). Research limitations/implications The primary results revealed that Ghanaian banks simultaneously coordinate and target capital, risk exposure and liquidity level. Also, capital adjustments positively influence risk adjustments and vice versa while bidirectional negative coordination exists between bank capital and risk on one hand and liquidity on the other hand. Short-term adjustments in new liquidity rule inversely impact bank capital and capital adjustments adversely affect changes in the LCR. The findings partially confirm the theoretical predictions of Repullo (2005) regarding the negative links between capital, risk and liquidity but the authors have higher capital induces higher risk. Practical implications Banks should balance off their targeted risk and liquidity in order not to sacrifice capital accumulation for liquidity. Originality/value This research offers new contributions in the research of bank management of capital and liquidity toward banks during a financial crisis from a theoretical perspective and trust management from an applicative perspective.
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Purnomo*, Hadi, Indah Sri Nurcahyani, and Mari Maryati. "Does Car Influence RoA? Evidence from State-Owned Banks." Jurnal Ilmu Keuangan dan Perbankan (JIKA) 12, no. 1 (December 30, 2022): 34–41. http://dx.doi.org/10.34010/jika.v12i1.8232.
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This research aims to determine the effect of the Capital Adequacy Ratio (CAR) against Return on Asset (RoA) in State-Owned Banks listed on the Indonesian Stock Exchange for the 2014-2021 period. The sample of this research is determined by saturation sampling method, so the obtained sample of 4 banks, there are PT Bank Negara Indonesia Tbk, PT Bank Rakyat Indonesia Tbk, PT Bank Tabungan Negara Tbk, and PT Bank Mandiri Tbk. The research method is used the causal associative with a quantitative approach. The analysis techniques used in this research are classical assumption test (normality test, heteroscedasticity test, and autocorrelation test) simple linear regression analysis, and hypothesis test using the software SPSS 22. The result of the research using the t-test showed that Capital Adequacy Ratio has a significant effect on Return on Asset. So, the bank's chances of making a profit will be higher if the capital is managed properly.
Keywords: Capital Adequacy Ratio; Return on Asset; SOE Banks; Finance; Management
Tujuan dari penelitian ini adalah untuk mengetahui pengaruh Capital Adequacy Ratio (CAR) terhadap Return On Asset (ROA) pada bank BUMN yang terdaftar di Bursa Efek Indonesia periode tahun 2014-2021. Sampel yang digunakan dalam penelitian ini adalah bank BUMN, yaitu PT Bank Negara Indonesia Tbk, PT Bank Rakyat Indonesia Tbk, PT Bank Tabungan Negara Tbk, and PT Bank Mandiri Tbk. Metode yang digunakan pada penelitian ini yaitu menggunakan metode asosiatif kausal dengan pendekatan kuantitatif. Teknik analisis data yang digunakan dalam penelitian ini adalah uji asumsi klasik (uji normalitas, uji heterokedastisitas, dan uji autokorelasi), analisis regresi linear sederhana, dan pengujian hipotesis menggunakan software SPSS 22. Hasil penelitian dengan pengujian uji t menunjukkan bahwa secara parsial Capital Adequacy Ratio berpengaruh terhadap Return On Asset. Jadi, kemampuan bank untuk menghasilkan keuntungan akan lebih tinggi jika modal yang dimiliki dikelola dengan baik.
Kata Kunci: Capital Adequacy Ratio; Return on Asset; Bank BUMN; Keuangan; Manajemen
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Siringoringo, Renniwaty. "INTERMEDIATION CHARACTERISTICS AND FUNCTIONS OF BANKING IN INDONESIA." Buletin Ekonomi Moneter dan Perbankan 15, no. 1 (October 3, 2012): 63–82. http://dx.doi.org/10.21098/bemp.v15i1.416.
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This paper analyzes the influence of ownership and specific characteristic of banks on the capital structure and the intermediation function of commercial banks in Indonesia. Using multivariate regression on bank level data of 2006-2009, the result shows the ownership structure, profitability, size, and management expense affect the bank capital structure, with a total effect of 50.14%. Towards the bank intermediation, with a total effect of 27.01%, the ownership structure, profitability, bank size, credit risk, expense management and capital structure influence the banks intermediation function. Keywords : Ownership structure, specific characteristic of bank, capital structure and bank intermediation functionJEL Classification: G21, G32
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Siringoringo, Renniwaty. "KARAKTERISTIK DAN FUNGSI INTERMEDIASI PERBANKAN DI INDONESIA." Buletin Ekonomi Moneter dan Perbankan 15, no. 1 (October 3, 2012): 61–83. http://dx.doi.org/10.21098/bemp.v15i1.57.
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This paper analyzes the influence of ownership and specific characteristic of banks on the capital structure and the intermediation function of commercial banks in Indonesia. Using multivariate regression on bank level data of 2006-2009, the result shows the ownership structure, profitability, size, and management expense affect the bank capital structure, with a total effect of 50.14%. Towards the bank intermediation, with a total effect of 27.01%, the ownership structure, profitability, bank size, credit risk, expense management and capital structure influence the banks intermediation function.Keywords : Ownership structure, specific characteristic of bank, capital structure and bank intermediation functionJEL Classification: G21, G32
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James, Hannah, Michael Casey, and David Mitchell. "Decline in State Chartered Banks: Causes, Concerns, and Conclusions." Studies in Business and Economics 14, no. 1 (April 1, 2019): 99–110. http://dx.doi.org/10.2478/sbe-2019-0008.
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AbstractThis paper investigates the decline of state chartered banks in the rural states Alabama, Arkansas, Nebraska, Oklahoma, and Tennessee. We use bank capital as the dependent variable for the mixed model regression analysis. We analyze both state and bank specific variables to determine which factors have more influence on bank equity capital. The findings indicate that as bank equity capital increases, the number of state chartered banks decreases. We also find that small agriculture business loans increase as equity capital increases, showing that in our sample of rural states agriculture is significant in providing a capital buffer for state chartered banks. However, we find that loans secured by farmland do not statistically influence bank equity capital.
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Jadah, Hamid Mohsin, Mohammed Faez Hasan, and Noor Hashim Mohammed Al-Husainy. "Dynamic Panel Data Analysis of Capital Structure Determinants: Evidence from Iraqi Banks." Journal of Business Strategy Finance and Management 2, no. 1-2 (December 25, 2020): 102–14. http://dx.doi.org/10.12944/jbsfm.02.01-02.11.
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This study investigates if the choice of capital structure of Iraqi banks could be interpreting through factors which have been studied by prior studies, which represented by determinants of capital structure choice (i.e., bank size, bank profitability, bank growth, tangibility, bank age). Using dynamic panel GMM for the period 2005 to 2019, this study maintains the explore on the determinants of capital structure of Iraq banks "developing country" that has circumstances likely to be quite different from those in developed and other major developing countries, particularly in terms of it deteriorating economic environment. The findings indicate that the bank size, bank profitability, bank age have a dominant role in explaining the variation in the long-term debt ratios of Iraqi banks. Meanwhile, only bank size, bank profitability, bank growth, bank age has a leading role in interpreting the variation of short-term debt ratios in the Iraqi banks. The current study has initiated some basis to discover the capital structure determinants of Iraqi banks upon which a more detailed evaluation could be based. Moreover, the experimental results can help Iraqi banks directors to choose the optimum structure of capital.
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Mohsin Jadah, Hamid, Mohammed Faez Hasan, and Noor Hashim Mohammed Al-Husainy. "Dynamic Panel Data Analysis of Capital Structure Determinants: Evidence from Iraqi Banks." Journal of Business Strategy Finance and Management 1 and 2, no. 1 and 2 (December 28, 2019): 102–14. http://dx.doi.org/10.12944/jbsfm.01.0102.08.
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This study investigates if the choice of capital structure of Iraqi banks could be interpreting through factors which have been studied by prior studies, which represented by determinants of capital structure choice (i.e., bank size, bank profitability, bank growth, tangibility, bank age). Using dynamic panel GMM for the period 2005 to 2019, this study maintains the explore on the determinants of capital structure of Iraq banks "developing country" that has circumstances likely to be quite different from those in developed and other major developing countries, particularly in terms of it deteriorating economic environment. The findings indicate that the bank size, bank profitability, bank age have a dominant role in explaining the variation in the long-term debt ratios of Iraqi banks. Meanwhile, only bank size, bank profitability, bank growth, bank age has a leading role in interpreting the variation of short-term debt ratios in the Iraqi banks. The current study has initiated some basis to discover the capital structure determinants of Iraqi banks upon which a more detailed evaluation could be based. Moreover, the experimental results can help Iraqi banks directors to choose the optimum structure of capital.
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Jadah, Hamid Mohsin, Mohammed Faez Hasan, and Noor Hashim Mohammed Al-Husainy. "Dynamic Panel Data Analysis of Capital Structure Determinants: Evidence from Iraqi Banks." Journal of Business Strategy Finance and Management 2, no. 1 (June 30, 2021): 102–14. http://dx.doi.org/10.12944/jbsfm.02.01.11.
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This study investigates if the choice of capital structure of Iraqi banks could be interpreting through factors which have been studied by prior studies, which represented by determinants of capital structure choice (i.e., bank size, bank profitability, bank growth, tangibility, bank age). Using dynamic panel GMM for the period 2005 to 2019, this study maintains the explore on the determinants of capital structure of Iraq banks "developing country" that has circumstances likely to be quite different from those in developed and other major developing countries, particularly in terms of it deteriorating economic environment. The findings indicate that the bank size, bank profitability, bank age have a dominant role in explaining the variation in the long-term debt ratios of Iraqi banks. Meanwhile, only bank size, bank profitability, bank growth, bank age has a leading role in interpreting the variation of short-term debt ratios in the Iraqi banks. The current study has initiated some basis to discover the capital structure determinants of Iraqi banks upon which a more detailed evaluation could be based. Moreover, the experimental results can help Iraqi banks directors to choose the optimum structure of capital.
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Abbas, Faisal. "Adjustment of Bank Capital Ratios." International Journal of Corporate Finance and Accounting 10, no. 1 (May 2, 2023): 1–15. http://dx.doi.org/10.4018/ijcfa.322552.
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This study explores the speed of adjustment of the capital ratio, regulatory ratio, and tier-I ratio of commercial banks in China by employing the GMM framework from 2006 to 2020. The empirical analysis reveals that banks adjust their regulatory ratio and tier-I ratio faster than the capital ratio of Chinses commercial banks. The findings report that the pace of regulatory ratio, a tier-I ratio of well-capitalized, highly liquid, and high growth banks are faster than under-capitalized, low liquid and low growth commercial banks in China. In addition, the speed of adjustment of regulatory ratio, the tier-I ratio is faster than capital ratio during the GFC-2008 in China. These findings suggest that the regulators may consider the heterogeneity in the speed of capital adjustment across different bank characteristics to formulate new bank regulations; particularly, when assessing and adjusting the specific capital requirements through Pillar II of the Basel III agreement.
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Miles, David, Jing Yang, and Gilberto Marcheggiano. "Optimal Bank Capital." Economic Journal 123, no. 567 (June 6, 2012): 1–37. http://dx.doi.org/10.1111/j.1468-0297.2012.02521.x.
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Sibindi, Athenia Bongani. "The Determinants of South African Banks' Capital Buffers." Journal of Economics and Behavioral Studies 10, no. 1(J) (March 15, 2018): 234–44. http://dx.doi.org/10.22610/jebs.v10i1(j).2106.
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The financing decisions of banks remain an enigma, increasingly attracting the attention of banking regulators and corporate finance scholars alike. The ‘buffer view’ of bank capital is premised on the notion that banks keep capital in excess of the regulatory requirements in line with bank specific factors. This study sought to test the ‘buffer view’ of bank capital. Utilising a sample of 16 South African banks for the period 2006-2015, panel data techniques were employed to estimate a fixed effects model to test the relationship between buffer capital and the firm level determinants of capital structure. It was established that the risk and size variables were negatively related to the buffer capital variable, whilst the dividend variable was positively related. This was consistent with the predictions of the buffer view of capital. The findings lend credence to the ‘buffer view’ school of thought about bank capital. These findings are also inconsistent with bank capital regulations solely determining the capital structures of banks but epitomises some measure of voluntary capital structure decision making by banking firms.
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Sibindi, Athenia Bongani. "The Determinants of South African Banks’ Capital Buffers." Journal of Economics and Behavioral Studies 10, no. 1 (March 15, 2018): 234. http://dx.doi.org/10.22610/jebs.v10i1.2106.
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The financing decisions of banks remain an enigma, increasingly attracting the attention of banking regulators and corporate finance scholars alike. The ‘buffer view’ of bank capital is premised on the notion that banks keep capital in excess of the regulatory requirements in line with bank specific factors. This study sought to test the ‘buffer view’ of bank capital. Utilising a sample of 16 South African banks for the period 2006-2015, panel data techniques were employed to estimate a fixed effects model to test the relationship between buffer capital and the firm level determinants of capital structure. It was established that the risk and size variables were negatively related to the buffer capital variable, whilst the dividend variable was positively related. This was consistent with the predictions of the buffer view of capital. The findings lend credence to the ‘buffer view’ school of thought about bank capital. These findings are also inconsistent with bank capital regulations solely determining the capital structures of banks but epitomises some measure of voluntary capital structure decision making by banking firms.
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Lumapow, L. S., V. W. P. Kaparang, and M. Kantohe. "Investigating Bank Capital on Firm Rating Analysis." SHS Web of Conferences 149 (2022): 03018. http://dx.doi.org/10.1051/shsconf/202214903018.
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This paper examined the correlation between firm ratings of banks and financial risks assessment of PEFINDO using profitability, asset quality, and liquidity as independent variables. This paper also investigated the impact of bank capital as controlling variable on bank ratings. The data which have been observed are financial reports from publicly-held banks in Indonesia and firm rating analysis released by PEFINDO during 2017-2021 consecutively, then was analyzed with regression model. This paper finds that profitability, asset quality and liquidity have no correlation with bank ratings without the existence of bank capital. As bank capital are taken into account, the correlation analysis had a significant difference and bank capital becomes determining factor in bank rating analysis.
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Herlina*, Listri, and Andre Suryaningprang. "Measuring the Capital Adequacy Ratio for Bank Business Activity Group 3 that listed in Indonesia Stock Exchange." Jurnal Ilmu Keuangan dan Perbankan (JIKA) 12, no. 2 (June 27, 2023): 181–90. http://dx.doi.org/10.34010/jika.v12i2.9442.
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This study analyzes how the capital condition of 10 commercial banks in the category of bank business activity group 3 which is listed on IDX. The analysis is related to central bank regulation concerning banks being required to increase capital more than the minimum capital adequacy ratio as a buffer to prevent a crisis. Using the panel data regression method to analyze the issue, four independent variables used from internal factors namely Non-Performing Loan, Net Interest Margin, Loan to Deposit Ratio, and Credit Growth, there are one bank has the capital highest and only needs to increase its capital for 4% to join bank business activity group. Furthermore, there are three banks with the lowest capital adequacy ratio. Research results found that NPL significantly affects the capital of 10 banks Group 3. Based on the result, when Non-Performing Loans increase the banks will increase their capital reserves beyond the minimum capital reserves that have been set as a buffer against potential losses.
Keywords: CAR; Bank Capital; Fixed Effect Method; Buffer; NPL
Abstrak
Penelitian ini dilakukan untuk mengetahui bagaimana kondisi permodalan 10 bank umum dalam kategori kegiatan usaha bank kelompok 3 yang terdaftar di BEI. Analisis ini terkait dengan peraturan bank sentral tentang bank yang wajib meningkatkan modal lebih dari rasio kecukupan modal minimum sebagai penyangga (Buffer) apabila terjadi krisis keuangan dan ekonomi yang dapat mengganggu stabilitas sistem keuangan. Dengan menggunakan metode regresi data panel untuk menganalisis permasalahan tersebut, digunakan empat variabel independen dari faktor internal yaitu NPL, NIM, LDR, Pertumbuhan Kredit. Terdapat 1 bank yang memiliki permodalan tertinggi dan dengan hanya menambah modal sebesar 4% bank tersebut dapat masuk kedalam kategori Bank Unit Kegiatan Usaha. Selanjutnya, terdapat tiga bank dengan rasio kecukupan modal terendah sehingga bank tersebut wajib meningkatkan modalnya. Hasil penelitian membuktikan bahwa NPL berpengaruh positif dan signifikan terhadap permodalan 10 bank Bank Unit Kegiatan Usaha 3. Dengan berpengaruhnya NPL terhadap permodalan bank, maka Ketika NPL meningkat bank akan menambah cadangan modal melebihi minimum cadangan modal yang telah di tetapkan sebagai penyangga terhadap potensi kerugian.
Kata Kunci: CAR; Modal bank; Metode Fixed Effect; Penyangga; NPL
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Marpaung, Annaria Magdalena, and Lizabeth . "Pengaruh Net Interest Margin (NIM) Dan Likuiditas Terhadap Capital Adequacy Ratio (CAR) Pada Bank Yang Terdaftar Di Bursa Efek Indonesia." Jurnal Ilmiah Manajemen Kesatuan 6, no. 1 (July 24, 2018): 017–24. http://dx.doi.org/10.37641/jimkes.v6i1.32.
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Sudirman (2013:93) opined that banks are obliged to provide minimum capital as of 8 (eight) percent. This can be measured using Capital Adequacy Ratio (CAR). CAR is a ratio calculated from the amount of Bank’s capital compared to ATMR. CAR is an indicator of Bank ability to cover its depreciated assets. This is a result from loss, due to risque assets (Dendawijaya, 2005). Fund distribution to the society in the form of loans is a Bank main actitivy other than collecting the fund from third party. The increase in revenues will result in the increasing of capital, such is with an assumption that the earned revenues are reinvested into capitals. In accordance to this, then Net Interest Margin (NIM)is being used to acquire the Bank management ability in managing its productive assets in order to produce net profit. Liquidity ratios are used to measure a Bank ability in fulfilling its short term when due (Kasmir, 2009). The larger the ratios, the more liquid the assets. The relationships of capital and liquidty is firm enough, the Bank does not need to obtain other source of capital to fulfill its short term obligations.
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Khan, Fatin Nur Hidayah Taib, Nurhafiza Abdul Kader Malim, Tajul Ariffin Masron, and Rossazana Ab Rahim. "The Impact of Capital Regulations on Bank Margins of ASEAN Banking Sector." Asian Academy of Management Journal of Accounting and Finance 19, no. 2 (November 30, 2023): 71–104. http://dx.doi.org/10.21315/aamjaf2023.19.2.3.
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Basel Committee on banking supervision (BCBS) has issued Basel which requires the banks to comply with the minimum capital requirement after the crisis. Nevertheless, whether the requirement imposes impact the banking sector which comprises a dual banking system, in a positive manner is still questionable. Given the higher capital costs from the strict capital requirements, banks are being forced to raise bank margins. This study investigates the effect of capital regulations on conventional and Islamic banks’ margins covering the ASEAN banking system from 2009 to 2017. The empirical analysis uses dynamic panel data frameworks to reveal several factors affecting bank margins. Overall, the results suggest that the total regulatory capital ratio helps reduce the margins of conventional banks but does not influence the margins of Islamic banks. As for the Tier-1 capital ratio, the variable increases the Islamic bank margins but does not significantly affect conventional bank margins. Based on the analysis results, regulators of conventional banks need to impose capital requirements as suggested by Basel III to reduce bank margins. Meanwhile, as for Islamic banks, the bank margins can be reduced if regulators can introduce a separate set of requirements tailored explicitly for Islamic banks.
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T. Jacques, Kevin. "Capital regulations, supervision and the international harmonization of bank capital ratios." Banks and Bank Systems 12, no. 1 (June 19, 2017): 175–83. http://dx.doi.org/10.21511/bbs.12(1-1).2017.11.
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In recent decades, despite the Basel Committee’s effort to develop internationally uniform regulatory capital standards, the capital ratios of banks across countries continue to exhibit significant differences. This paper examines the fundamental question of whether, given a uniform regulatory capital standard, regulators should expect similar banks to exhibit similar risk-based capital ratios. More specifically, this study develops a one-period theoretical model to examine the level playing field argument in light of not only uniform regulatory capital standards but also differences in bank supervision. The results of the theoretical model suggest that even with an internationally uniform risk-based capital requirement, it is unreasonable to expect banks in different countries to hold similar capital ratios. This occurs, in part, because regulators have discretion in how they apply the risk-based capital standards. Furthermore, the results suggest that a necessary condition for banks to exhibit similar capital ratios is that uniform capital requirements must be accompanied by a uniform stringency and application of regulatory supervision.
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Maramis, Pingkan Aprilia. "ANALISIS TINGKAT KESEHATAN BANK DENGAN METODE RGEC (RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNING, CAPITAL) PADA PT. BANK MANDIRI (PERSERO) PERIODE 2015 - 2018." JURNAL PEMBANGUNAN EKONOMI DAN KEUANGAN DAERAH 20, no. 3 (March 13, 2020): 1. http://dx.doi.org/10.35794/jpekd.28212.20.3.2020.
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ABSTRAK Dunia perbankan begitu penting dalam masyarakat maupun dalam memajukan perekonomian suatu Negara. Bank dijadikan sebagai tempat untuk melakukan berbagai transaksi yang berhubungan dengan keuangan seperti, tempat mengamnkan uang, melakukan investasi, pengiriman uang, melakukan pembayaran atau melakukan penagihan, Kasmir (2014:2). Menyadari pentingnya peranan bank, maka kesehatan bank harus terjaga karena bank mengelola dana masyarakat yang dipercayakan kepada bank. Berdasarkan Peraturan Bank Indonesia No. 13/1/PBI/2011 tentang Penilaian Tingkat Kesahatan Bank Umum dengan Risk-Profile, Good Corporate Governance (GCG), Earnings, dan Capital yang selanjutnya disebut dengan metode RGEC. Penelitian ini bertujuan untuk mengetahui penilaian tingkat kesehatan Bank Mandiri Periode 2015-2018 dilihat dari factor Risk-Profile, Good Corporate Governance (GCG), Earnings, dan Capital. Dalam penelitian ini penilaian pada factor Risk-Profile dilihat dari risiko kredit diukur dengan rasio NPL dan risiko likuiditas diukur dengan rasio LDR, factor Good Corporate Governance (GCG) diukur dengan penilaian self assessment bank, factor Earning diukur dengan rasio ROA, dan factor Capital diukur dengan rasio CAR. Hasil penelitian yang telah dilakukan menunjukan Bank Mandiri selama periode 2015-2018 pada factor Risk Profile dengan rasio NPL mendapatkan predikat Sehat, dengan rasio LDR mendapatkan predikat Cukup Sehat, pada factor GCG mendapatkan predikat Sangat Baik, pada factor Earnings mendapatkan predikat Sangat Sehat, dan factor Capital mendapatkan predikat Sangat Sehat. Kata Kunci: profil risiko, GCG, Rentabilitas, Permodalan, Kesehatan Bank ABSTRACT Banking is very important in society as well as in advancing the economy of a country. Banks are used as a place to carry out various financial-related transactions such as, a place to deposit money, make investments, send money, make payments or make collections, Kasmir (2014: 2).Recognizing the important role of banks, bank health must be maintained because banks manage public funds entrusted to banks. Based on Bank Indonesia Regulation No. 13/1 / PBI / 2011 concerning Evaluation of Commercial Bank Health Levels with Risk-Profile, Good Corporate Governance (GCG), Earnings, and Capital , hereinafter referred to as the RGEC method. This study aims to determine the level of soundness of Bank Mandiri for the period of 2015-2018 seen from thefactors Risk-Profile, Good Corporate Governance (GCG), Earnings, and Capital. In this study the assessment on factors Risk-Profile views of credit risk is measured by the ratio of NPL and liquidity risk is measured by the LDR, factor Good Corporate Governance (GCG) was measured with the assessment of self-assessment of banks, the factor Earning measured by ROA, and factors Capital is measured with a CAR ratio. The results of research that have been done show that Bank Mandiri during the 2015-2018 period on thefactor Risk Profile with the NPL ratio received the title of Healthy, with the LDR ratio getting the Pretty Healthy predicate, the GCG factor received the Very Good predicate, thefactor Earnings earned the Very Healthy predicate, and the factor Capital gets the title of Very Healthy. Keywords: risk profile, GCG, Profitability, Capital, Bank Health
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Godswill, Osuma, Ikpefan Ailemen, Romanus Osabohien, Ndigwe Chisom, and Nkwodimmah Pascal. "Working capital management and bank performance: empirical research of ten deposit money banks in Nigeria." Banks and Bank Systems 13, no. 2 (June 18, 2018): 49–61. http://dx.doi.org/10.21511/bbs.13(2).2018.05.
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Working capital management is germane for the success of the banking industry in Nigeria, especially the current state of the sector, which is engulfed with the effect of the global decline in oil price that has resulted in non-performing loans, deterioration of the bank asset quality, laying-off of staff amongst others. This is one of the reasons why the profitability of the banking sector deeply depends on the efficient management of a bank’s working capital. Therefore, the objective of this study is to examine how profitability of banks can be enhanced through the working capital management. To empirically carry out the analysis, panel data which consist of ten (10) deposit money banks in Nigeria for seven years (2010–2016) employing the panel fixed effect, panel random effect and the pooled OLS for the two models, which were used as proxies for bank profitability, which includes return on asset (ROA) and return on equity (ROE) to examine the best measure for bank profitability, with the indicators of working capital; net interest income, current ratio, profit after tax, and monetary policy rate. Results of the study showed that working capital management has a significant effect on the profitability of the selected banks and that return on asset is a better measure for bank profitability. Therefore, the study recommends that there should be a periodic review of the minimum capital base of the Nigerian deposit money banks so as to mitigate the effects of inflation and inculcate the consequence of time value of money, because the purchasing power of one (₦1) naira or one ($1) dollar today would not be sufficient to purchase what it can purchase today for tomorrow.
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Andiani, Yanti, and Ari Prasetyo. "INTELLECTUAL CAPITAL, COMPETITIVE ADVANTAGE DAN RETURN ON ASSETS BANK UMUM SYARIAH DI INDONESIA PERIODE Q1 2017-Q4 2018." Jurnal Ekonomi Syariah Teori dan Terapan 7, no. 10 (October 30, 2020): 1887. http://dx.doi.org/10.20473/vol7iss202010pp1887-1902.
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ABSTRAKPenelitian ini bertujuan untuk mengetahui pengaruh intellectual capital terhadap return on assets dengan competitive advantage sebagai variabel intervening pada bank umum syariah di Indonesia periode Q1 2017-Q4 2018. Sampel dalam penelitian ini adalah bank umum syariah di Indonesia selama periode 2017-2018. Data dikumpulkan menggunakan metode purposive sampling dan memperoleh 10 bank umum syariah. Pendekatan yang digunakan adalah pendekatan kuantitatif dengan teknik analisis jalur (path analysis) dan menggunakan software SPSS. Hasil penelitian ini menunjukkan bahwa: 1) intellectual capital berpengaruh positif dan signifikan terhadap competitive advantage bank umum syariah. 2) intellectual capital berpengaruh positif dan signifikan terhadap return on assets bank umum syariah. 3)competitive advantage berpengaruh positif signifikan return on assets bank umum syariah. 4) competitive advantage memediasi hubungan intellectual capital terhadap return on assets pada bank umum syariah.Kata Kunci: Intellectual Capital, Competitive Advantage, Return on Assets, Bank Umum Syariah ABSTRACTThis study aims to determine the effect of intellectual capital on return on assets with competitive advantage as an intervening variable in Islamic commercial banks in Indonesia in the period Q1 2017-Q4 2018. The sample in this study is Islamic commercial banks in Indonesia during the period 2017-2018. Data were collected using a purposive sampling method and obtained 10 Islamic commercial banks. The approach used is a quantitative approach with path analysis techniques (path analysis) and using SPSS software. The results of this study indicate that: 1) intellectual capital has a positive and significant effect on the competitive advantage of Islamic banks. 2) intellectual capital has a positive and significant effect on return on assets of Islamic banks. 3). competitive advantage has a significant positive effect on Islamic banks' return on assets. 4) competitive advantage mediates the relationship of intellectual capital to return on assets in Islamic commercial banks.Keyword: Intellectual Capital, Competitive Advantage, Return on Assets, Sharia General Bank
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Linawati, Nanik, M. Moeljadi, Djumahir, and Siti Aisjah. "The effect of profitability and bank size on firm value sustainability: The mediating role of capital structure." Investment Management and Financial Innovations 19, no. 2 (July 1, 2022): 331–43. http://dx.doi.org/10.21511/imfi.19(2).2022.29.
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Sustainable firm value is the central concept for corporations, including the banking industry. This study examines the effect of profitability and bank size on firm value through capital structure. This study surveyed six banks registered in BUKU 4-member commercial banks operating in Indonesia that have been listed on the Indonesian Stock Exchange and implemented digital banking practices from 2007 to 2019. The six banks are Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Central Asia, Bank CIMB Niaga, and Bank Panin. Data collection is carried out by tracing the banks’ reports from the Bloomberg system terminal. Data analysis used a two-stage least squares technique. The results showed that profitability negatively and significantly affected the capital structure with a coefficient of –0.374. Moreover, bank size influences the capital structure with a negative coefficient value of –0.334. In addition, profitability positively affects firm value with a coefficient value of 0.387. Furthermore, bank size influences capital structure with a beta coefficient value of 0.158. Finally, the bank size affects firm value with a coefficient value of –0.419. These findings provide an insight for bank management to enhance firm value by assessing profitability, bank size, and capital structure. This study also contributes to the ongoing research in financial management.
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Akhter, Nazmoon. "Assessing the Relationship between Efficiency, Capital and Risk of Commercial Banks in Bangladesh." International Journal of Business and Management 14, no. 1 (December 18, 2018): 55. http://dx.doi.org/10.5539/ijbm.v14n1p55.
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Increased competition and problem loan in the banking sectors force banks to operate its activities more efficiently. However, bank’s efficiency, capital and risk are interrelated. The present study is made on assessing the inter-temporal relationship between efficiency, capital and risk of commercial banks in Bangladesh during the period 2011-2016 by setting simultaneous equation. The study uses three-stage least square model (3SLS) and dynamic panel generalized method of moments (GMM) model to estimate efficiency-capital-risk relationship. The study reports that both models provide consistent result regarding the relationship of bank’s operational efficiency with capital and risk and inconsistent result about the relationship between capital and risk. The study concludes that a U-shaped relationship is exited in the 3SLS model of efficiency-capital-risk relationship as banks’ operational efficiency and risk have positive relationship with capital and bank size, indicating that with increased capital and bank size, bank’s operational efficiency is improved at decreasing rate due to increase in bank’s risk.
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Changjun Zheng, Md Mohiuddin Chowdhury, Md Abdul Mannan Khan, and Anupam Das Gupta. "Effects of ownership on the relationship between bank capital and financial performance: evidence from Bangladesh." International Journal of Research in Business and Social Science (2147- 4478) 12, no. 9 (December 18, 2023): 260–74. http://dx.doi.org/10.20525/ijrbs.v12i9.2987.
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The financial performance of banks relies heavily on properly utilizing their capital. However, bank ownership can have varying effects on the relationship between financial performance and capital. This study delves into this relationship by examining the impact of ownership on financial performance and bank capital. The study analyzes data from 44 commercial banks in Bangladesh and uses a two-step system generalized method of moments to address heteroscedasticity and autocorrelation issues. Unlike previous studies, this study confirms the significant effect of ownership on the relationship between bank financial performance and bank capital. The study's main findings are: (1) an inverted U-shaped relationship exists between bank capital and financial performance, implying that increasing capital can improve and reduce financial performance. (2) Private and Islamic commercial banks perform better than state-owned and conventional banks. (3) private-owned and Islamic commercial banks with higher capital are more likely to achieve higher profitability and financial success, while state-owned and conventional commercial banks with higher capital show lower profitability and weaker financial performance. Overall, this study offers significant practical implications for academics, researchers, and regulators interested in leveraging these findings.
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Wahyudin, Muhammad, Marlina Widiyanti, Isni Andriana, and Isnurhadi Isnurhadi. "Capital Structure: Capital Buffer, Return on Equity, Capital Adequacy Ratio in Go-Public Banking in Indonesia." Journal of Social Science 5, no. 1 (January 15, 2024): 23–35. http://dx.doi.org/10.46799/jss.v5i1.741.
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Banking companies may be faced with adjustment costs (cost of capital adjustment) to obtain optimal capital ratios. These costs arise when banks increase or obtain new external capital so that capital adjustments can lead to excess or shortage of capital which can have a negative impact and cause banks to be reluctant to react quickly when capital shocks occur. This research explores the most significant factors that influence bank capital policy choices in Indonesia. This study examines the financing choices of 8 banks for the 2013-2022 period using panel data regression analysis techniques with STATA.17. The results of the Random Effect Model Estimation research where bank companies in Indonesia have high leverage support the fact that the nature of bank business is different from non-banking companies. The significant negative relationship of the capital buffer is in line with the too big fail theory, packing order theory and agency theory, as well as the Retrun On Equity and Capital Adequancy Ratio variables which have a significant positive relationship at an accuracy level of 85.01%, so in other words banking companies can use debt to finance the company on the basis of agency or managerial policies and strategies, thereby proposing pecking order theory with the assumption that there is information asymmetry and agency costs that are relevant both in the long term.
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Wahyudin, Muhammad, Marlina Widiyanti, Isni Andriana, and Isnurhadi Isnurhadi. "Capital Structure: Capital Buffer, Return On Equity, Capital Adequacy Ratio In Go-Public Banking In Indonesia." Asian Journal of Engineering, Social and Health 3, no. 1 (January 18, 2024): 76–85. http://dx.doi.org/10.46799/ajesh.v3i1.218.
Full textAbstract:
Banking companies may be faced with adjustment costs (cost of capital adjustment) to obtain optimal capital ratios. These costs arise when banks increase or obtain new external capital so that capital adjustments can lead to excess or shortage of capital which can have a negative impact and cause banks to be reluctant to react quickly when capital shocks occur. This research explores the most significant factors that influence bank capital policy choices in Indonesia. This study examines the financing choices of 8 banks for the 2013-2022 period using panel data regression analysis techniques with STATA.17. The results of the Random Effect Model Estimation research where bank companies in Indonesia have high leverage support the fact that the nature of bank business is different from non-banking companies. The significant negative relationship of the capital buffer is in line with the too big fail theory, packing order theory and agency theory, as well as the Retrun On Equity and Capital Adequancy Ratio variables which have a significant positive relationship at an accuracy level of 85.01%, so in other words banking companies can use debt to finance the company on the basis of agency or managerial policies and strategies, thereby proposing pecking order theory with the assumption that there is information asymmetry and agency costs that are relevant both in the long term.
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Danarsari, Dwi Nastiti, and Viverita Viverita. "BANK REGULATION AND STABILITY: LESSON LEARNED FROM THE INDONESIAN BANKING SECTOR." Journal of Southwest Jiaotong University 57, no. 6 (December 30, 2022): 114–30. http://dx.doi.org/10.35741/issn.0258-2724.57.6.10.
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This study aims to investigate the impact of bank regulations on bank stability. This study holds crucial significance in Indonesia’s long regulation journey within a bank-based economy to maintain stability in various business cycles, including the Asian financial crisis. Additionally, although the capitalization of the Indonesian banking sector is the highest among the G-20 countries, the capitalization of these more than 100 banks varies widely and is concentrated among large banks. Thus, it is necessary to implement the capital requirement policy meticulously. This study examines the impact of bank regulations in terms of capital requirement and bank capitalization on bank stability using a sample of Indonesian commercial banks and employs a dynamic panel regression. We expect to improve from the previous study by using the research period from 2001 to 2019 that captures different business cycles, analyzing three of Indonesia’s bank regulations, and providing further analysis by incorporating the role of bank market power and size in the relationship between bank capital and bank stability. The results show that capital discipline implemented in the capital requirements significantly supports bank stability. Furthermore, the findings show that low-to-middle capitalization banks are associated with weak bank stability in terms of solvency. However, low-capitalized banks tend to be more prudent in granting credit, so exposure to credit risk is low. Moreover, this study reveals that market power and size strengthen the impact of capital on bank stability. However, such an influence should be accompanied by intense supervision to avoid credit risk exposure.
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Arping, Stefan. "Capital Regulation and Bank Deposits*." Review of Finance 23, no. 4 (June 13, 2018): 831–53. http://dx.doi.org/10.1093/rof/rfy019.
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Abstract Recent literature suggests that higher capital requirements for banks might lead to a socially costly crowding out of deposits by equity. This paper shows that additional equity in banks can help to crowd in deposits. Intuitively, as banks have more equity and become safer, the cost of deposit funding may decline; this, in turn, can encourage banks to expand their deposits. However, I also find that, for this effect to occur, capital requirements may have to be stringent enough: When bank capital is low, a small rise in capital requirements can cause banks to substitute equity for deposits. Overall, a non-monotonic relationship between the required amount of equity in banks and their level of deposit funding obtains.
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W.P. Kaparang, Vica. "PREDIKSI PEMERINGKATAN BANK DI INDONESIA BERDASARKAN PERMODALAN BANK." Jurnal Ilmiah Manajemen dan Kewirausahaan 2, no. 2 (May 30, 2023): 71–75. http://dx.doi.org/10.55606/jimak.v2i2.1573.
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Penelitian ini bertujuan untuk mencari model persamaan yang sesuai memprediksi pemeringkatan bank menggunakan nilai modal inti maupun CAR dengan yang didasarkan dari urgensi bank-bank di Indonesia dalam memenuhi regulasi permodalan. Analisis dilakukan melalui estimasi di mana pengukuran terhadap permodalan menggunakan Tier 1 Capital dan CAR. Persamaan eksponensial menunjukkan nilai koefisien determinasi dan standard error yang lebih baik dibandingkan kedua persamaan lainnya. Lebih lanjut, jika membandingkan hasil dari variabel permodalan di antara Tier 1 capital dan CAR, maka persamaan eksponensial untuk prediksi pemeringkatan bank dengan Tier 1 Capital lebih baik dibandingkan hasil yang ditunjukkan oleh CAR. Penelitian ini menunjukkan bahwa bank dengan permodalan yang memadai atau CAR yang tebal belum tentu sejalan dengan prediksi pemeringkatan yang semakin besar, namun komposisi modal dengan nilai modal inti yang semakin besar akan semakin mendukung prediksi pemeringkatan bank
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Lukić, Radojko. "Analysis of financial performance and efficiency of banks in Serbia using fuzzy LMAW and MARCOS methods." Bankarstvo 51, no. 3-4 (2022): 130–69. http://dx.doi.org/10.5937/bankarstvo2204130l.
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Researching bank efficiency factors is very challenging. Bearing that in mind, this paper analyzes the financial performance and efficiency of banks in Serbia based on the fuzzy LMAWMARCOS method. The obtained empirical results show that the top five banks are, in order: Banca Intesa, OTP Banka Srbija, Komercijalna banka, Mobi Banka and NLB banka. Badly positioned banks include, in order: MIRABANK, API banka, Srpska banka, 3 BANKA and Addiko Bank. Among other things, the efficiency of banks in Serbia was significantly affected by the Covid-19 pandemic. In order to improve the financial performance and efficiency of banks in Serbia in the future, it is necessary to manage resources (human capital, assets and capital), sales of banking products and profits as efficiently as possible. The digitization of the entire banking business also plays a significant role in this.
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Salim, Agus, and Suripto Suripto. "Does prudential capital reduce bank risk-taking? Empirical evidence from the Indonesian banks industry." Jurnal Ekonomi & Studi Pembangunan 24, no. 1 (June 16, 2023): 182–97. http://dx.doi.org/10.18196/jesp.v24i1.17696.
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The implementation of macroprudential supervision, significantly tighter capital regulation in developing economies, has recently been debated, which focuses on reducing bank risk-taking and promoting financial stability in the banking sector. Our study investigates the impact of prudential capital on commercial bank risk-taking in Indonesia. We employed a GMM system approach to analyze bank and macro level data from 2004 to 2019. Our result confirms that appropriate capital regulations for reducing bank risk-taking are heterogeneous. Traditional capital ratios decrease bank risk-taking. However, the risk-based capital ratio shows an unexpected affirmative effect. Implementing macroprudential policy instruments of capital buffer effectively manages bank risk, and so does the regulatory capital pressure variable. The results are intimate for guiding commercial banks' risk management and capital effectiveness.
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Datta, Kanchan. "Relationship between Commercial Banks Credit and Per capita net state domestic product of India: A Regional Panel data analysis." International Journal of Finance Research 2, no. 2 (September 19, 2021): 84–93. http://dx.doi.org/10.47747/ijfr.v2i2.324.
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In general, bank credit plays a pivotal role in economic growth. Because bank credit may stimulate the capital accumulation and rate of saving that further induce the economic growth. However there are no unanimous opinion on the relationship between bank credit and economic growth. Under these circumstances, an attempt has been taken in this paper to investigate the role of bank credit, capital outlay and government’s social sector spending on per capita net state domestic product of India . this study finds that random effect model is better than fixed effect model and expansion of bank credit significantly affecting the per capita net state domestic product, capital outlay also positively and significantly affecting the per capita net state domestic product
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Nhung, Vu Cam, and Lai Cao Mai Phuong. "Social Capital of Bank Leaders and Activities of Commercial Banks." International Journal of Financial Research 12, no. 2 (January 11, 2021): 115. http://dx.doi.org/10.5430/ijfr.v12n2p115.
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This study has explored and measured the composition of social capital of leaders affecting the capital activities, capital use and service provision of Vietnam commercial banks. The research hypotheses are built on previous studies and developed through expert interviews. The research model uses a system of questions to build out 4 scales of social capital of bank leaders. Research results from 243 leaders of bank branches in Ho Chi Minh show that the social capital of bank leaders, expressed through their social relationships with subjects such as friends, colleagues, business partners and managers at all levels, is is very important to the operations of banks. Based on this finding, the social capital of bank leaders should be considered as an important resource to exploit and improve the business performance of the bank.