Determinants influencing capital adequacy ratio of Vietnamese commercial banks

Vu, Hung Phuong; Dang, Ngoc Duc

doi:10.5267/j.ac.2020.5.007

Cited by 9 publications

(14 citation statements)

References 1 publication

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“…Non-performing loan memiliki pengaruh negatif dan tidak signifikan terhadap capital adequacy ratio pada perusahaan perbankan yang terdaftar di Bursa Efek Indonesia periode 2018-2020 sehingga hipotesis pertama (Ha1) ditolak. Hasil penelitian ini konsisten dengan hasil penelitian Vu & Dang (2020) namun tidak konsisten dengan penelitian Choerudin et al (2016) dan Annor et al (2020). Non-performing loan yang tinggi mencerminkan kredit bermasalah yang makin tinggi dan menimbulkan kerugian bagi perusahaaan akibat penundaan penyelesaian kredit.…”

Section: Diskusiunclassified

Pengaruh NPL Dan LDR Terhadap Profitability Perusahaan Perbankan Dengan CAR Sebagai Mediasi

Basri

2022

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This study aims to obtain empirical evidence regarding the effect of NPL and LDR on profitability through CAR as intervening variable. Profitability is proxied by ROA. Purposive sampling technique is used to collect data. This study uses data from 27 banking companies listed on the Indonesian Stock Exchange from 2018-2020 with total 81 data. The analysis technique used is path analysis and data are processed with SPSS 17. The result of data analysis found that NPL and LDR have negative insignificant effect on CAR. NPL indicates it has a negative significant effect on profitability. Meanwhile, LDR has a positive insignificant effect on profitability and CAR has a positive significant effect on profitability. Based on the result of path analysis, CAR cannot mediate the effect of NPL and LDR on profitability.

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Section: Diskusiunclassified

Pengaruh NPL Dan LDR Terhadap Profitability Perusahaan Perbankan Dengan CAR Sebagai Mediasi

Basri

2022

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“…The higher rate of return enables banks to obtain funds from retained earnings. High returns also make banks more attractive in raising funds (Phuong and Duc, 2020). The return on equity can also be called the return to the owner.…”

Section: Theoretical Reviewmentioning

confidence: 99%

“…Conversely, when the liquidity of the bank is low, the bank is unable to fulfill the depositors' request for credit withdrawals and disbursements. (Phuong and Duc, 2020) pointed out that with the ratio of equity investments to cash, the bank's liquidity risk would lead to a decrease in the liquidity premium of the earn profit margin. Consequently, an encourage in the bank's liquidity may have a positive effect on the capital ratio.…”

Section: Theoretical Reviewmentioning

confidence: 99%

Factor Affecting the Capital Adequacy Ratio of Banks Listed in Indonesia Stock Exchange

Setiawan

Muchtar²

2021

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The purpose of this study is to conclude the factors that affect bank capital adequacy ratios. The sample used is 42 banks listed on the Indonesia Stock Exchange in 2015-2019. The analysis method used was panel data regression and using purposive sampling for the sampling technique. The independent variables in this study are loan loss reserves, return on equity, bank size liquidity ratio and loan ratio, and capital adequacy ratio is the dependent variable. The results show that bank size and the return on equity have a positive effect on capital adequacy ratio, while loan ratio has a negative effect on capital adequacy ratio. The liquidity ratio and loan loss reserve have no effect on the capital adequacy ratio. It is expected that the results of this study will provide a reference for companies to understand the factors that affect capital adequacy. Managerial implications: Banking companies are expected to increase the total number of assets held, increase return on equity and reduce bank loan ratios to avoid the risk of bad credit.

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“…In the case of capital requirement, Financial Service Authority has the authority. In the case of banks' capital research, almost all research use capital adequacy ratio for the proxy for banks' capital (Bhattarai, 2020;El-Ansary, El-Masry, & Yousry, 2019;Murtiyanti et al, 2015;Phi, Hoang, Taghizadeh-Hesary, & Yoshino, 2019;Shingjergji & Hyseni, 2015;Sudiyatno, Puspitasari, Susilowati, Sudarsi, & Udin, 2019;Thoa, Anh, & Minh, 2020;Vu & Dang, 2020). This is because they use commercial banks as sample.…”

Section: Introductionmentioning

confidence: 99%

“…The magnitude of loan determines the level of CAR. Vu & Dang (2020), also investigated the influence of loan on CAR. Contrary to other research, they found that loan imposed no influence on CAR.…”

Section: Introductionmentioning

confidence: 99%

The Dynamics of Macroeconomic and Microeconomic Determinants with The Capital of Rural Banks

Ponziani

2022

jejak

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The research aims to investigate the dynamics among rural banks’ capital, macroeconomic variables and microconomic variables. Macroeoconomic variable consists of infllation and interest. Microeconomic variables consist of loan to deposi ratio, nonperforming loans, and return on assets. The data are excerpted from OJK and BI’s website. The data are monthly data extending from January 2010 until May 2021. The testing method used is vector error correction model (VECM). The results show that rural banks’ capital is significantly affected the previous state of capital and profitability. This indicates the importance of sustainability of capital in rural banks and how it is very much dependent upon the profitability of the rural banks. Further, the research results show that there ar two cointegrating functions in the model. Both cointegration functions are influential to inflation. The speed adjustment derived from the residuals of capital function is 0.6754% and 13.5669% for residual from inflation function itself. The slow adjustment process is due to the small market share and assets of rural banking sector. In addition, capital, nonperforming loans, and return on assets are pivotal for central bank monetary policy to control inflation.

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Determinants influencing capital adequacy ratio of Vietnamese commercial banks

Cited by 9 publications

References 1 publication

Pengaruh NPL Dan LDR Terhadap Profitability Perusahaan Perbankan Dengan CAR Sebagai Mediasi

Pengaruh NPL Dan LDR Terhadap Profitability Perusahaan Perbankan Dengan CAR Sebagai Mediasi

Factor Affecting the Capital Adequacy Ratio of Banks Listed in Indonesia Stock Exchange

The Dynamics of Macroeconomic and Microeconomic Determinants with The Capital of Rural Banks

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