Analysis of Capital Buffer in Indonesian Banking

Abstract

Abstract-Capital

Perbandingan Kinerja Keuangan Perbankan Syariah Indonesia Dengan Malaysia

“…Indikator keuangan yang umum digunakan berupa pertumbuhan aset, pembiayaan, dan dana pihak ketiga (Bakar et al, 2018;Miftah & Wibowo, 2017). Selanjutnya, rasio keuangan yang dibandingkan dalam penelitian ini berupa capital adequacy ratio (CAR), financing to deposit ratio (FDR), loan to total assets (LTA), dan non-performing financing (NPF) (Sadalia et al, 2017;Vivin & Wahono, 2017).…”

“…Dengan menggunakan rasio LTA dapat dilihat bagaimana kemampuan aset perbankan dalam memenuhi kewajiban pinjaman atau pembiayaanya. Rumus perhitungan rasio tersebut adalah sebagai berikut (Sadalia et al, 2017):…”

Fundamental Factors and Capital Behavior of Banking in Indonesia

“…Studies on the determinants of capital buffers have been widely conducted, such as by both internal and external factors. Non performing loans (Atici & Gursoy, (2012); Haryanto (2015); Sadalia et al (2017); Tasman (2020)), Cash holding (Tasman (2020); Sadalia et al (2017); Tasman (2020); Atici & Gursoy (2012), economic cycle (Shim, 2013), bank size (Atici and Gursoy 2012;Guidara et al 2013;Jiang et al 2020) and some other research. However, when viewed from the direction of the influence of independent variables on dependent variables, most studies conduct directly testing independent variables against dependent variables in the sense that the test model has not considered the contribution of other variables to the influence of independent variables on dependent variables.…”

“…In the discussion about the influence of NPL on Capital Buffer shows the consistency of the influence of NPL on capital buffers. Research Antoun et al (2021); Haryanto (2015); Jokipii & Milne (2011); Sadalia et al (2017); Tasman, (2020) increased capital buffer is influenced by the increase in NPL faced by banks. However, the results of research (Atici & Gursoy, 2012;Fauzia & Idris, 2016;Guidara et al 2013;Haryanto, 2015;Tabak et al, 2011), the moral hazard of banking will encourage banks to form a lower capital buffer when the NPL increases.…”

“…Fonseca and Gonzalez Research (2010), Bayuseno & Chabachib (2014); Purwanti et al (2017); Sadalia et al (2017) the precautionary principle must be applied by banks to operational activities. Application of the precautionary principle on lending activities is carried out through good credit management, which starts from feasibility assessment activities to credit management after realization.…”