scholarly journals DAMPAK PENERBITAN DAN PENJUALAN SURAT UTANG NEGARA BAGI PEREKONOMIAN INDONESIA

2017 ◽  
Author(s):  
Irma Setyawati
Keyword(s):  
Banking Sector ◽  
Descriptive Analysis ◽  
Capital Adequacy ◽  
Government Bond ◽  
Interest Payment ◽  
Library Research ◽  
Capital Adequacy Ratio ◽  
Bond Property ◽  
The Government ◽  
The Impact

The edition and the sale of the country's obligation letter/government bond give the impact to the banking sector, monetary, and fiscal, as well as the monitory authority. The objective of the study is to verify the impact of the edition and the sale of the government bondfor lndonesia economy. The methods used are descriptive analysis of the collected data from library research and other resources related to the topic.The research found that the impact to the Capital Adequacy Ratio is getting better, the impact to the monetary is the increase of the money quantity as much as the interest payment given by the government conserving the government bond property, the impact to the monetary authority is the decrease of liquidity support and the increase of lndonesian Bank outstanding to the government. The sale of government bond gives fresh fund to the government which can be invested, to the productivity asset, to support the process of economy recovery Post print

scholarly journals PENGUATAN STRUKTUR MODAL SEBAGAI PEMENUHAN REGULASI DAN PENDUKUNG PENGEMBANGAN BISNIS

2020 ◽  
Vol 12 (1) ◽  
pp. 43-51
Author(s):  
Tedi Setiawan ◽  
Jaja Suteja ◽  
Ellen Rusliati
Keyword(s):  
Capital Structure ◽  
Research Method ◽  
Banking Industry ◽  
Market Competition ◽  
Descriptive Analysis ◽  
Capital Requirements ◽  
Capital Adequacy ◽  
Effective Strategies ◽  
Capital Adequacy Ratio ◽  
The Impact

Decision on capital structure have an important role in determinig banking performance.This study aims to find alternative strategies for Bank X in fulfilling the capital requirements and to measure its the effectivities in order to reach the capital requirements of the Bank X to be in accordance with the regulations in 2018. The results of this study are expected to provide useful information related to the importance of strengthening the capital structure of the company, especially in the banking industry in order to maintain the continuity of business and to win in the market competition. The study was conducted at Bank X was located in Bandung. The research method used was survey with qualitative research approaches. While the type of research was explorative descriptive analysis. The results of the study was found three effective strategies to meet the capital needs of Bank X in 2018, namely asset revaluation, reduction in dividend payout ratio (DPR) and the issuance of subordinated bonds. These three strategies could improve Capital Adequacy Ratio (CAR). while alternative simulations need to be carried out to determine the impact of the decision making.

scholarly journals Determinants of Credit Risk in the Banking Sector of Ghana: A Panel Co-integration Approach

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Thomas Appiah ◽  
Frank Bisiw
Keyword(s):  
Credit Risk ◽  
Least Squares ◽  
Banking Sector ◽  
Ordinary Least Squares ◽  
Capital Adequacy ◽  
High Rate ◽  
Long Run ◽  
Integration Techniques ◽  
The Government ◽  
The Impact

The economic development of any nation hinges on the health of its financial system. In recent years, the health of the Ghanaian Banking sector has been affected severely as a result of high levels of non-performing loans (NPLs), which has been identified as a major threat to the overall profitability and survival of banks. To minimize the impact of NPLs on the financial sector, key stakeholders such as the government, bank officials and regulators are working hard in that regard. However, any policy response aimed at dealing with the high rate of non-performing loans first requires the understanding of the underlying determinants of NPLs. Against this backdrop, this paper apply panel co-integration techniques to investigate the determinants of credit risk (NPLs) in the banking sector of Ghana.  We use NPL as a proxy to measure credit risk and assess how it is influenced by macroeconomic and bank-specific factors. A balanced panel data of 16 universal banks in Ghana from 2010 to 2016 has been analyzed using Panel co-integration techniques such as Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS). Our result shows that growth in the economy, measured by Gross Domestic Product (GDP) has significant influence on the NPLs of banks in the long-run. The results further revealed that capital adequacy, profitability and liquidity of banks are significant predictors of NPLs. However, our results suggest that bank size, inflation and interest rate have statistically insignificant influence on the NPLs of Ghanaian banks. The study recommend, among others, that whereas it is important for government and policymakers to work to improve macroeconomic outcomes, banks should also improve their capital adequacy, profitability, and efficiency position as these bank-specific interventions could significantly improve credit quality and minimize NPLs.

scholarly journals The Impact of Financial Ratios, Operational Efficiency and Non-Performing Loan Towards Commercial Bank Profitability

2016 ◽  
Vol 1 (1) ◽  
pp. 43-50
Author(s):  
Fiola Christaria ◽  
Ratnawati Kurnia
Keyword(s):  
Banking Sector ◽  
Operational Efficiency ◽  
Capital Adequacy ◽  
Public Confidence ◽  
Return On Assets ◽  
Bank Profitability ◽  
Operating Income ◽  
Capital Adequacy Ratio ◽  
Income Ratio ◽  
The Impact

Objective - The objective of this paper is to determine the impact of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Operational Efficiency proxies by Operational Expense to Operating Income Ratio (BOPO)and Non-Performing Loan (NPL) towards bank profitability proxies by Return on Assets (ROA). Methodology/Technique - Purpose samplingis applied to gather samples of the banking sector that was listed on the Indonesia Stock Exchange for the period of 2012 - 2014. Multiple regression analysis was used to analyse data. Findings - The F test result shows that CAR, LDR, BOPO, and NPL simultaneously, have a significant impact towards ROA. This means that the model can be used to predict bank profitability. It is also deduced that Operational Efficiency proxies by Operational Expense to Operating Income Ratio has a significant impact towards banking profitability. Novelty - This paper suggests that banks perform lending selectively and banks maintain the level of non-performing loans to be low in order to manage the risks and to improve their profitability as a means of increasing public confidence level. Type of Paper Empirical Keywords: Capital Adequacy Ratio; Loan to Deposit Ratio; Non-performing Loan; Operating Expense to Operating Income; Return on Assets. JEL Classification: D81, G21.

scholarly journals Credit Risk and Profitability of Banking Sector in Sri Lanka

2021 ◽  
Vol 3 (1) ◽  
pp. 65-71
Author(s):  
Herath Mudiyanselage Kasun Salitha Bandara ◽  
Ahamed Lebbe Mohamed Jameel ◽  
Haleem Athambawa
Keyword(s):  
Sri Lanka ◽  
Credit Risk ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Sri Lankan ◽  
Return On Assets ◽  
Net Charge ◽  
Panel Data Regression ◽  
Capital Adequacy Ratio ◽  
The Impact

This paper aims to investigate the impact of credit risk on the profitability of the banking sector in Sri Lanka. The profitability is measured with and Return on Assets. At the same time, credit risk is quantified with four indicators: Non-performing loan Ratio (NPLR), Loan to Deposit Ratio (LDR), Net Charge off Ratio (NCOR), and Capital Adequacy Ratio (CAR). Data from thirteen banks over eight years from 2010 to 2017 was analyzed using panel data regression analysis. The finding shows that the Profitability of the Banking Sector in Sri Lanka has been determined by important determinants such as credit risk. The study further finds that non-performing loans have negative and significant return on assets. However, the net charge-off ratio and the loan to deposit ratio are not important variables for expanding the bank's profitability. On the other hand, the CAR positively impacts returns on assets. The study suggested the need to strengthen the management of credit risk in order to preserve Sri Lankan banks' current profitability.

scholarly journals Pemanfaatan Waqf Uang di Masa Pandemic Covid-19 Dalam Perspektif Maqasid Syariah

2021 ◽  
Vol 4 (2) ◽  
pp. 244-259
Author(s):  
Nurlaili Nurlaili
Keyword(s):  
Social Networks ◽  
Descriptive Analysis ◽  
Point Of View ◽  
The Public ◽  
Opportunity To Respond ◽  
Economic Problems ◽  
Library Research ◽  
The Government ◽  
The Many ◽  
The Impact

Money waqf can be used to overcome socio-economic problems that occur in Indonesia, this should be an opportunity to respond to the impact of the Covid-19 pandemic. As stated in the maqasid sharia concept, responding to a pandemic requires strategic and clear goals. This research paper aims to analyze whether the use of cash waqf has been optimally utilized or not at the time of covid 19, as well as cash waqf in terms of maqasid shariah. This study uses qualitative methods, using descriptive analysis in library research. The results of this study indicate that the use of cash waqf in Indonesia is still not optimal in overcoming the impact of this pandemic, there are several regions that still do not feel the distribution of the use of cash waqf. From the maqasid shari'ah point of view, the use of cash waqf is in accordance with As-Syatibi's description of the three mandatory concepts, namely "dharuriyah, hajiyah and tahsiniyah". This study provides advice to stakeholders such as scholars, universities, or schools and the government together provide understanding to the public regarding money waqf, with the many understandings of money waqf in Indonesia, of course adding nominal cash waqf funds to be utilized according to socio-economic needs in Indonesia and can make social networks to help micro-communities in need Keywords: Waqf money, covid-19 pandemic in Indonesia, Maqasid Shari'ah   ABSTRAK. Waqf uang dapat diperuntukan mengatasi masalah sosial-ekonomi yang terjadi di Indonesia, hal ini harusnya dapat menjadi sebuah peluang untuk merespons dampak dari pandemic Covid-19. Sebagaimana tertuang dalam konsep maqashid syariah, merespons pandemi membutuhkan tujuan yang strategis dan jelas. Makalah penelitian ini bertujuan untuk menganalisis penggunaan waqf uang telah dimanfaatkan secara optimal atau belum pada saat covid 19, serta waqf uang ditinjau dari maqasid shariah. Pada penelitian ini menggunakan metode kualitatif, dengan menggunakan analisis-deskriptif pada penelitian library research (kepustakaan). Hasil dari penelitian ini menunjukkan bahwa penggunaan waqf uang di Indonesia masih belum optimal dalam mengatasi dampak dari pandemi ini, terdapat beberapa daerah yang masih belum merasakan pemerataan dari pemanfaatan waqf uang. Dari sudut maqasid shari’ah, penggunaan waqf uang telah sesuai dengan uraian As-Syatibi tentang tiga konsep wajib, yaitu “dharuriyah, hajiyah dan tahsiniyah”. Penelitian ini memberikan saran kepada stakeholder seperti para ulama, universitas atau sekolah dan pemerintah bersama-sama memberikan pemahaman kepada masyarakat terkait wafqf uang, dengan banyaknya pemahaman waqf uang di Indonesia tentu menambahkan nominal dana waqf uang untuk dapat dimanfaatkan sesuai dengan kebutuhan sosial-ekonomi di Indonesia dan dapat menjadikan jaringan sosial untuk membantu masyarakat mikro yang membutuhkan. Kata kunci: Waqf uang, pandemi covid-19 di Indonesia, Maqasid Shari’ah

scholarly journals NPAs in Indian Scheduled Commercial Banks: Origination and Impact on Economy

2019 ◽  
Vol 8 (2S6) ◽  
pp. 538-541
Keyword(s):  
Banking Sector ◽  
Global Financial Crisis ◽  
Capital Adequacy ◽  
Credit System ◽  
Secondary Sources ◽  
Root Cause ◽  
Reserve Bank ◽  
Capital Adequacy Ratio ◽  
Financial Soundness ◽  
The Government

Mounting non-performing assets (NPAs) in the Indian banking sector has been drawing the attention of policymakers, economists, academicians, and other stakeholders. More particularly, during the last ten years, the rise in NPAs of banks has sent the alarming bell both to the Reserve Bank of India and the Government. Per a few studies, one of the root cause for the huge and gigantic rise in NPAs is the 2008 global financial crisis besides lending to Priority sector. The necessity of provisions and high funding costs has also caused an increase in NPAs while bringing down the profitability of banks. Hence, the consequent impact of NPA includes poor recycling of funds due to the weak deployment of credit which potentially could thwart the financial soundness of the credit system. Higher NPAs not only shakes the confidence of investors, depositors, lenders, etc., but also imperil liquidity, solvency position, profitability, capital adequacy ratio, and so on. A few measures that are required for management of NPAs like the establishment of monitoring department, reformulation of banks’ credit appraisal techniques, among others. The paper examines the trends of NPAs and the factors responsible for mounting NPAs in the banking sector from non-identical aspects. The use of secondary sources of data from authentic websites of RBI, Finance Ministry, and Banks has been made.

scholarly journals Why Banks Need Adequate Capital Adequacy Ratio? A Study of Lending & Deposit Behaviors of Banking Sector of Pakistan

2018 ◽  
Vol 4 (1) ◽  
pp. 1-16
Author(s):  
Sakina Narmeen ◽  
Irum Saba ◽  
Rehana Kouser ◽  
Haris Khurram
Keyword(s):  
Panel Data ◽  
Banking Sector ◽  
Banking Industry ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Leverage Ratio ◽  
Secondary Sources ◽  
Capital Adequacy Ratio ◽  
The Impact

This study focuses on the impact of Capital Adequacy Ratio on bank’s lending and deposit behavior and also on the importance of maintaining certain level of capital reserve. CAR is examined using two different ratios leverage ratio and risk-based capital ratio. This study is beneficial for the banking industry in determining enough CAR and to make decision for taking deposits and issuing loans. The sample of the study includes 25 banks of Pakistan; 20 conventional and 5 Islamic banks and the study period is of 10 years. Panel data methodology is used. Data is collected from secondary sources. Findings show that CAR has impact on change in capital and change in loans.

scholarly journals The Impact of Capital Adequacy Ratio (CAR) on Islamic Banks’ Performance in Selected MENA Countries

2021 ◽  
pp. 116-133
Author(s):  
ADEL Z. A. ALNAJJAR ◽  
Anwar Hasan Abdullah Othman
Keyword(s):  
United Arab Emirates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Mena Countries ◽  
Capital Adequacy Ratio ◽  
The Impact

A strong capital adequacy ratio is crucial to a financial institution's success and helps it to survive any potential financial crisis. From Q1 2017 to Q4 2019, the influence of the Capital Adequacy Ratio (CAR) on the performance of Commercial Islamic Banks in MENA nations (Qatar, Oman, Bahrain, Kuwait, United Arab Emirates, Saudi Arabia, and Jordan) is examined. The performance measures utilized in this study are Return on Assets (ROA) and Return on Equity (ROE). The study's sample frame comprises all Islamic commercial banks in the designated MENA nations, with a sample size of 18 Islamic commercial banks. Panel data, fixed and random models, are applied in this study since there are multiple entities and time series. The findings of the study showed that the selected Islamic banks are committed to Capital Adequacy Ratio (CAR) which is defined under Basel III. This is considered the largest percentage regulated by the Basel Committee. The study also found that there is a statistically negative significant influence of CAR on both performance indicators ROE and ROA in the commercial Islamic banks in the selected MENA countries. The results of the study can be useful to a policymaker or decision-makers in the Islamic Banks industry. First, the research could be a reference to financial regulators such as central banks which may use the findings to provide regulation on optimal capital levels for local banks in terms of regulations, deregulations, and financial disruption. Next, the practice implications in the Islamic banking sector will provide them with insight as to how a bank’s capital influences its earnings. Hence, management can work towards attaining an optimal structure that maximizes their performance as well as identifying “best” and “worst” practices associated with capitalization levels.

The impact of banks’ capital adequacy ratio on bank lending channel of monetary transmission in Russia

2017 ◽  
pp. 62-78 ◽  
Author(s):  
O. Borzykh
Keyword(s):  
Banking Sector ◽  
Value Added ◽  
Bank Lending ◽  
Capital Adequacy ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Capital Adequacy Ratio ◽  
The Impact

The new Basel III rules of macroprudential regulation were introduced for the Russian banking sector in 2014. This article analyzes a previously unexamined for Russia impact of capital adequacy ratio on the effectiveness of bank lending channel. It is shown that when banks satisfy capital regulation rules this has a direct influence on this channel of monetary transmission mechanism: a high capital adequacy ratio weakens a contractionary effect of an increase in the Bank of Russia key rate and further stimulates credit growth when the Bank of Russia decreases its key rate. The peculiar properties of the Bank of Russia key rate dynamics in the previous years allowed to reveal the asymmetry of monetary transmission. Such an analysis also reflects the value-added of the present study.

scholarly journals Capital Adequacy and Financial Performance of Banks in Nigeria: Empirical Evidence Based on the Fgls Estimator

2016 ◽  
Vol 12 (25) ◽  
pp. 295 ◽  
Author(s):  
David Umoru ◽  
Joy O. Osemwegie
Keyword(s):  
Financial Performance ◽  
Empirical Evidence ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Evidence Based ◽  
Panel Model ◽  
Capital Adequacy Ratio ◽  
The Impact

The study examines the degree of significance of the capital adequacy ratio in influencing the financial deeds of Nigerian banks by applying the feasible GLS estimator technique on the pooled panel model for the period of 2007 to 2015. Empirical evidence supports the overriding impact of capital adequacy in enhancing the financial deeds of Nigerian banks. Nevertheless, the impact of the estimated capital adequacy is below 30%. The policy stance of the empirics holds thus that depositor’s money in the banking sector has not been absolutely assured. Hence, the deposit money banks might not be able to fulfil their liabilities and risk. In light of the findings, we suggested a constant reassessment of the least amount of capital required of banks by the CBN.

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