Factors determinant of bank capital buffer: empirical study on islamic rural banking in Indonesia

Sutrisno, Sutrisno

doi:10.2991/insyma-18.2018.21

Cited by 4 publications

(12 citation statements)

References 4 publications

(11 reference statements)

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“…This is possible because it turns out that LDR is not able to increase profitability (Masood et al, 2013), even the results of this study have a negative effect on the capital buffer. This finding supports the findings by Sutrisno (2018) and Haryanto (2015), who found an insignificant effect of LDR with capital buffer. While different results were found by Eliskovski (2014) and Belém and Gartner (2016) who showed a significant effect between LDR and capital buffer.…”

Section: Discussionsupporting

confidence: 92%

“…These results are consistent with the findings by Belém and Gartner (2016) who found the effect of previous capital buffers. Likewise, Wong et al (2008) in America and Sutrisno (2018) in Indonesia also found the effect of previous CAR with a capital buffer. In contrast, Hewaidy and Alyousef (2018) found insignificant effects.…”

Section: Discussionmentioning

confidence: 84%

“…The bank capital declines, the more it reduces the ability of banks to provide capital buffers. Sutrisno (2018) found that, in Islamic banks in Indonesia, credit risk also reduces the capital buffer. Likewise, He and Fu (2009) found that in China NPLs have a negative effect on capital buffers.…”

Section: Discussionmentioning

confidence: 99%

“…The results of research by He and Fu (2009) found that in China NPL has a negative effect on capital buffer, while Tamimi and Obeidat (2013) in Jordan found NPL does not affect capital buffer. On the other hand, Sutrisno (2018) found a positive influence between credit risk as measured by NPL and capital buffer.…”

Section: Introductionmentioning

confidence: 90%

“…With the higher the LDR, the higher the bank's income, which in turn will increase the bank's capital. The results of research by Sutrisno (2018) show that in China LDR has a positive effect on capital buffer. Likewise, Belém and Gartner (2016) also found a significant effect between LDR and capital buffer.…”

Section: Introductionmentioning

confidence: 98%

See 4 more Smart Citations

Capital Buffer and Determinant Factors of Conventional Banks in Indonesia

Anisa¹,

Sutrisno²

2020

JAFEB

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Banking is very regulated by the government and even has to follow regulations issued by the Basel Committee on Banking Supervision, which regulates banking in the world. According to Basel III, banks must provide capital reserves called capital buffers. The purpose of this study is to examine the factors that determine capital buffer. Factors thought to affect the capital buffer studied consisted of profitability (ROA), credit risk (NPL), liquidity risk (LDR), capital adequacy in the previous period (CARt-1), management risk (NIM), and ratio of operating risk (OER). The population in this study is conventional banks listed on the Indonesia Stock Exchange, as many as 42 banks, with a sample of 40 banks taken by purposive sampling method with an observation period of four years with quarterly data (2016-2019). To test the hypotheses, regression panel data is used. After being tested, it turns out that the fixed effect model is better than the common effect and random effect. The results of the study with fixed effect models show that ROA, NPL, and OER significantly and negatively affect capital buffer. CAR t-1 has a positive and significant effect on capital buffer, while LDR and NIM do not affect capital buffer.

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Section: Discussionsupporting

confidence: 92%

Section: Discussionmentioning

confidence: 84%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 90%

Section: Introductionmentioning

confidence: 98%

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Capital Buffer and Determinant Factors of Conventional Banks in Indonesia

Anisa¹,

Sutrisno²

2020

JAFEB

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Capital Buffer, Risk, Profitability, Size, and Macroeconomics: Empirical Study on Islamic Banks

Septiarini

Hisan

Matsahri

et al. 2021

Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah

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Abstract. The development of Islamic economics has led to the growth of Islamic banking, as a financial institution based on sharia principles. This research aims to analyze the relationship of risk, profitability, company size, and macroeconomics with capital buffer of Shariah Commercial Banks Indonesia during the period of 2015-2019. The study used a quantitative approach of the regression panel data with stata13 statistical tools. This study used secondary data with a population of 14 sharia commercial banks and a sample of 12 Islamic commercial banks using purposive sampling method. BOPO, NM, ROA, and KURS (exchange rate) were found to have significant positive effects on CB. SIZE has a significant negative effect, while NPF has positive insignificant effect on CB. Islamic banks, regulators, and governments may consider risks, profitability, company size, and macroeconomic conditions in determining the size of capital buffers and maintaining the adequacy of capital owned by Islamic Banking.Keyword: Capital Buffer, Islamic Economic Systems, Shariah Banks. Abstrak. Ekonomi Islam menjadi paradigma baru yang komprehensif. Bank syariah dalam sistem ekonomi Islam merupakan lembaga keuangan dengan prinsip syariah. Penelitian ini bertujuan untuk menganalisis hubungan risiko, profitabilitas, ukuran perusahaan, dan makroekonomi dengan penyangga modal (CB) Bank umum syariah (BUS) di Indonesia pada tahun 2015-2019. Pendekatan penelitian menggunakan pendekatan data panel kuantitatif regresi dengan alat statistik stata13. Penelitian ini menggunakan data sekunder dengan populasi 14 Bank Islam dan sampel 12 bank umum syariah berdasarkan metode purposive sampling. BOPO, NM, ROA, dan KURS (nilai tukar) ditemukan memiliki pengaruh positif yang signifikan terhadap CB. SIZE memiliki hubungan negatif signifikan, sedangkan NPF positif tidak signifikan. Bank syariah, regulator, dan pemerintah dapat mempertimbangkan risiko, profitabilitas, ukuran perusahaan, dan kondisi makroekonomi dalam menentukan ukuran penyangga modal dan menjaga kecukupan modal yang dimiliki oleh Perbankan Syariah.Kata Kunci: Penyangga Modal, Sistem Ekonomi Syariah, Bank Syariah

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Analysis Of The Factors That Influence Islamic Bank Capital Buffers In Indonesia

2020

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Banks are trust institutions. An appropriate tool in sustaining trust is the capital adequacy of the bank (capital buffer). This study aims to analyze the effect of financing risk (NPF), operational risk (BOPO), market risk (NI), Third Party Funds (DPK), GDP Growth (GDPG) and inflation on BUS capital buffers in Indonesia during the 2014-2018 period. This study uses panel data regression method with a sample of 12 BUS based on purposive sampling technique. BOPO, DPK, GDPG, and INF were found to have a significant effect on BUFF, where BOPO, DPK, and INF had a negative effect, while GDPG was positive. So operational risk, third party funds, GDP Growth, and inflation can be said to be determinants of BUS capital buffers in Indonesia in the 2014-2018 period. Financing risk (NPF) and market risk (NI) have no significant effect on BUS capital buffer in the study period. Regarding basel III implementation, operational risk is a significant determinant of capital buffer, and capital buffer is found to be procyclical to the Indonesian economy. Future studies can include more risk measurement variables and other macroeconomic variable

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Factors determinant of bank capital buffer: empirical study on islamic rural banking in Indonesia

Cited by 4 publications

References 4 publications

Capital Buffer and Determinant Factors of Conventional Banks in Indonesia

Capital Buffer and Determinant Factors of Conventional Banks in Indonesia

Capital Buffer, Risk, Profitability, Size, and Macroeconomics: Empirical Study on Islamic Banks

Analysis Of The Factors That Influence Islamic Bank Capital Buffers In Indonesia

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