The Influence of Risk Management to the Return on Asset (ROA) Banking Sector (Case Study of Bank in Indonesia Listed in Indonesia Stock Exchange)

Abstract

As companies in general, commercial banks in the operational as well have a goal to be able to get the maximum profit. Therefore, banks must maintain its financial ratios adjusted for the decision of Bank Indonesia as well as maintain its performance in order to remain trusted by customers in the economic activities. This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loan (NPL), Net Interest Margin (NIM) an Operating Expenses to Operating Income Ratio (OEOI) to the Return on Assets (ROA) of bank in Indonesia listed in Indonesia Stock Exchange in the period 2007 -2011. 25 banks are investigated and 17 of them are chosen as samples. The analysis technique of this study used in this study is multiple linear regressions to obtain a comprehensive picture of the relationship between variables that one with the other variables. In addition, the hypothesis test used was the t-test statistic for testing the partial regression coefficient and test F-statistic for testing significance together with the significance level of 5 %. The results of this study indicate that NPL and OEOI significantly and negatively related to ROA banking sector, CAR, LDR, and the NIM has non-significant impact on ROA in banking sector. The results of this study is expected that the variable CAR, LDR, NPL, NIM, and OEOI can used as guidelines for the management of banks in managing a bank in order to become a healthy bank.

Analysis Financial Performance of Rural Banks in Indonesia

“…The results of previous studies state that the higher the CAR ratio, the rural bank profitability increases, so that the capital of a bank can be said to be stronger (Agustini & Budiasih, 2014). But the results of different studies show that CAR variables have no significant effect on ROA (Winarso & Salim, 2017). Different results also state that CAR has a negative and significant effect on ROA (Wardana & Widyarti, 2015).…”

Faktor-Faktor Yang Mempengaruhi Profitabilitas Bank Perkreditan Rakyat (BPR) di Provinsi Jawa Timur

“…CAR adalah rasio yang memperlihatkan seberapa besar jumlah seluruh aktiva bank yang mengandung unsur risiko yang ikut dibiayai dari modal sendiri bank, disamping memperoleh dana-dana dari sumber-sumber lain (Dendawijaya, 2009 Hasil penelitian terdahulu menyatakan bahwa semakin tinggi rasio CAR maka profitabilitas BPR semakin meningkat, sehingga permodalan suatu bank bisa dikatakan semakin kuat (Agustini & Budiasih, 2014). Namun hasil penelitian yang berbeda menunjukkan bahwa peubah CAR tidak berpengaruh signifikan terhadap ROA (Winarso & Salim, 2017). Hasil berbeda juga menyatakan bahwa CAR berpengaruh negatif dan signifikan terhadap ROA (Wardana & Widyarti, 2015)…”

“…Dimana peningkatan LDR akan mendorong tingginya ROA (Agustini & Budiasih, 2014). Sedangkan hasil yang berbeda menyatakan bahwa LDR tidak berpengaruh signifikan terhadap ROA (Winarso & Salim, 2017.…”

Faktor Yang Mempengaruhi Profitabilitas Perbankan Syariah Di Indonesia

“…CAR dan profitabilitas perbankan syariah CAR digunakan untuk menilai kemampuan bank untuk menanggung resiko yang akan terjadi. Apabila CAR dalam suatu perbankan tinggi, menunjukkan bahwa perbankan tersebut memiliki ekuitas yang lebih besar untuk menutupi resiko yang dapat mempengaruhi jumlah modal dalam perbankan (Winarso & Salim, 2017). Modal bank juga berfungsi agar deposan yang menyimpan uangnya di bank tidak merasa terbebani oleh resiko macetnya dana ketika dibutuhkan untuk kepentingan yang tak terduga oleh pihak deposan (Artha & Mulyana, 2018).…”