scholarly journals Does Bank Liquidity Matter in the Loan Supervision Effect of Bank Capital Adequacy Ratio?

2021 ◽  
Vol 12 (04) ◽  
pp. 849-868
Author(s):  
Jie Gao ◽  
Xingfeng Li
Keyword(s):  
Capital Adequacy ◽  
Bank Capital ◽  
Capital Adequacy Ratio

scholarly journals Dynamics of Risk Factors Affecting the Capital Adequacy Ratio with Special Reference to UCO Bank

2019 ◽  
Vol 8 (2) ◽  
pp. 10-13
Author(s):  
Preeta Sinha ◽  
Protik Basu
Keyword(s):  
Market Risk ◽  
Capital Adequacy ◽  
Basel Iii ◽  
Bank Capital ◽  
Financial Reports ◽  
Factors Affecting ◽  
Operational Risks ◽  
Capital Adequacy Ratio ◽  
Using Data ◽  
Asset Quality

To reinforce the stability of the financial system, policy makers and the Basel committee have proposed Basel accord to ensure that financial institutions maintain sufficient capital buffers. Basel III framework emphasizes on sustained increase in bank capital in order to absorb the potential credit, market and operational risks. The capital adequacy requirement under Basel III norms are directly linked to the PCA (Prompt Corrective action) framework which has disrupted the flow of credit in the economy. Market risk, Credit risk, Operational risk and deposits are some of the factors affecting the capital adequacy ratio (CAR) which influences the bank performances. This study aims at analysing the most important factor responsible for the shrinking liquidity due to adherence of stringent capital adequacy ratio imposed by RBI. Currently 11 public sector Banks out of 21 PSUs under PCA has sequentially shrunk their loan book including UCO Bank. The bank’s asset quality has worsened over the years. Using regression analysis, this paper seeks to study the major determinants of Capital Adequacy ratio using data sets for the period from 2009 to 2018 of UCO bank. The data was collected from the financial reports of the UCO bank for the aforesaid period. Among the parameters considered, it was found that deposits affect the CAR the most and market risk has the lowest impact on CAR.

scholarly journals MODAL, TINGKAT LIKUIDITAS BANK, NPL DAN PERTUMBUHAN KREDIT PERBANKAN INDONESIA

2019 ◽  
pp. 96
Author(s):  
Rahmat Setiawan ◽  
Ahmad Aziz Putra Pratama
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Multiple Linear Regression Model ◽  
Capital Adequacy ◽  
Bank Capital ◽  
Financial Report ◽  
Moderating Variables ◽  
Credit Quality ◽  
Capital Adequacy Ratio ◽  
Positive Effect

The purpose of this research is to examine the effect of bank capital on lending growth with moderation of liquidity level and credit quality of banking companies listed in Indonesia Stock Exchange (IDX). This study used multiple linear regression model and Moderated Regression Analysis (MRA). Data obtained from the company’s financial report published in 2010-2016 period. Dependent variable in this research is lending growth proxied with Net Loans Growth. Independent variable used bank capital proxied with Capital Adequacy Ratio (CAR). Moderating variables in this research used liquidity level proxied with liquidity ratio and credit quality proxied with non performing loan (NPL). In addition, controlling variable in this study is firm size proxied with logarithm of total assets. The results showed that bank capital has significant positive effect on lending growth, while the liquidity ratio strengthens positive effect of bank capital on lending growth and non performing loan mitigates positive effect of bank capital on lending growth.Keywords:capital adequacy ratio, firm size, liquidity ratio, net loans growth, non performing loan.

scholarly journals An Optimal Portfolio and Capital Management Strategy for Basel III Compliant Commercial Banks

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Grant E. Muller ◽  
Peter J. Witbooi
Keyword(s):  
Optimal Investment ◽  
Investment Strategy ◽  
Capital Adequacy ◽  
Basel Iii ◽  
Bank Capital ◽  
Optimal Investment Strategy ◽  
Capital Adequacy Ratio ◽  
Asset Portfolio ◽  
The Interest Rate ◽  
Strategy Subject

We model a Basel III compliant commercial bank that operates in a financial market consisting of a treasury security, a marketable security, and a loan and we regard the interest rate in the market as being stochastic. We find the investment strategy that maximizes an expected utility of the bank’s asset portfolio at a future date. This entails obtaining formulas for the optimal amounts of bank capital invested in different assets. Based on the optimal investment strategy, we derive a model for the Capital Adequacy Ratio (CAR), which the Basel Committee on Banking Supervision (BCBS) introduced as a measure against banks’ susceptibility to failure. Furthermore, we consider the optimal investment strategy subject to a constant CAR at the minimum prescribed level. We derive a formula for the bank’s asset portfolio at constant (minimum) CAR value and present numerical simulations on different scenarios. Under the optimal investment strategy, the CAR is above the minimum prescribed level. The value of the asset portfolio is improved if the CAR is at its (constant) minimum value.

scholarly journals THE NEW CAPITAL ADEQUACY FRAMEWORK (BASEL III) OPTIONS AND ISSUES IN COMMERCIAL BANKS OF LITHUANIA

Ekonomika ◽  
2015 ◽  
Vol 93 (4) ◽  
pp. 119-134 ◽  
Author(s):  
Filomena Jasevičienė ◽  
Daiva Jurkšaitytė
Keyword(s):  
Banking Regulation ◽  
Capital Requirements ◽  
Capital Adequacy ◽  
System Stability ◽  
Basel Iii ◽  
Management Problem ◽  
Bank Capital ◽  
Factors Influencing ◽  
Capital Adequacy Ratio ◽  
The World

Currently, banking is one of the most regulated activities in the world, because banks are the most important institutional units engaged in financial intermediation and affects not only the whole national economy of the country, but the global financial market as well. One of the key components of banking regulation are requirements expected for the bank capital, which prevent the bank from various unforeseen risks incurring substantial losses and are a sort of guarantee to maintain the financial system stability. For this reason, it is useful to find out what factors affect the capital adequacy ratio, and what measures the banks are going to take in order to meet the new capital requirements. The present research reveals the options of the implementation of the new system and the main problems faced by banks. The paper consists of four main parts: review of theory and literature, the research methodology of the factors influencing the capital adequacy, the study of factors influencing the capital adequacy ratio, and the capital adequacy management problem areas according to the Basel III requirements and conclusions.

Rasio Pembiayaan Bermasalah, Tingkat Kecukupan Modal, Dan Rasio Profitabilitas Di PT. Bank Muamalat

Liquidity ◽  
2018 ◽  
Vol 5 (1) ◽  
pp. 35-42
Author(s):  
Irma Novida
Keyword(s):  
Precautionary Principle ◽  
Banking Industry ◽  
Capital Adequacy ◽  
Bank Capital ◽  
Capital Asset ◽  
The Precautionary Principle ◽  
Bank Management ◽  
Capital Adequacy Ratio ◽  
Public Money ◽  
Asset Quality

In obtaining profit or banking profitability is not separated from the name of risk, because it cannot be denied that in fact the banking industry is an industry that is closely related to the risk, especially since it involves the management of public money and played in the form of investment activities, such as credit or financing. Financing is one form of business of the bank as an indicator in the assessment of the bank, for financing the assets which provide the largest portion of income for banks. Financing risks will have an impact on the smooth and banks ability to obtain profitability. In addition, many financial problems can lead to the erosion of bank capital that can be seen from the Capital Adequacy Ratio (CAR). The decrease of CAR certainly result in decreased ability of banks to channel financing, which in the end the bank to lose its ability to generate optimal profit. In addition, banks may have difficulties endangering its survival is characterized by decreasing capital, asset quality, liquidity and profitability as well as bank management is not carried out based on the precautionary principle and the principles of sound banking.

scholarly journals Capital Buffer dan Faktor Penentunya di Indonesia

2020 ◽  
Vol 10 (2) ◽  
pp. 132
Author(s):  
Abel Tasman
Keyword(s):  
Business Cycle ◽  
Sample Selection ◽  
Adjustment Costs ◽  
Capital Adequacy ◽  
Bank Capital ◽  
Going Public ◽  
Capital Adequacy Ratio ◽  
Two Factors ◽  
The Difference ◽  
The Business Cycle

Capital buffer is defined as the difference between the bank's capital ratio and the capital adequacy ratio (Capital Adequacy Ratio) or CAR imposed by the Central Bank. Capital buffers can be used as capital reserves in times of various economic shocks so as to minimize risks faced by banks. A bank that has a high capital buffer reflects a high CAR as well, while a CAR that is too high is also not profitable for the bank, because this capital should be used for lending and investing in an effort to maximize profits. This study aims to determine the determinants of going public banking capital buffer in Indonesia for the period 2014 to 2018. The sample selection is based on purposive. Acting as the dependent variable is the capital buffer and the independent variables are ROE, NPL, Lag of capital buffer (〖BUFF〗 _ (t-1)), Size and GDP. This study used  multiple regression analysis. The results of this study indicate that the selected determinants of the capital buffer of going public banking in Indonesia are adjustment costs and the business cycle. Adjustment costs have a positive and significant effect on the capital buffer of going public banking in Indonesia and the business cycle has a negative and significant effect on the capital buffer of go public banking. public in Indonesia. Thus, the sample companies can optimize their capital buffer which can be ideal in order to maximize profits by considering the two factors above.

scholarly journals ANALISIS PERBANDINGAN KINERJA KEUANGAN BANK KONVENSIONAL DENGAN BANK SYARIAH YANG TERDAFTAR DI BEI

2019 ◽  
Author(s):  
Suhartono ◽  
Irdha Yusra
Keyword(s):  
Central Asia ◽  
T Test ◽  
Capital Adequacy ◽  
Bank Capital ◽  
Return On Assets ◽  
Capital Adequacy Ratio

Tujuan Penelitian ini adalah untuk menganalisis perbedaan kinerja keuangan Bank syariah dengan bank konvensional. Metode pengujian yang digunakan dalam penelitian uji Normalitas menggunakan metode Kolomogorov Smirnov dan Uji Independent Sample T-Test. Penelitian ini dilakukan pada Bank Mandiri Syariah dan Bank BRI Syariah (mewakili bank syariah), Bank Negara Indonesia, Bank Central Asia, Bank Tabungan Negara, Bank Bukopin, Bank Capital Indonesia, dan Bank Danamon Indonesia(mewakili bank konvensional). Aspek keuangan yang digunakan adalah rasio CAR (Capital Adequacy Ratio), kualitas aktiva produktif menggunakan rasio NPL (Non Performing Loan), rentabilitas menggunakan rasio ROA (Return On Assets), efisiensi menggunakan rasio BOPO (Beban Operasional terhadap Pendapatan Operasional), dan aspek likuiditas menggunakan rasio LDR (Loan to Deposit Ratio). Berdasarkan hasil penelitian ditemukan bahwa terdapat perbedaan yang signifikan antara kinerja perbankan syariah dibandingkan dengan perbankan konvensional, berdasarkan rasio NPL, ROA, BOPO, dan LDR. Sedangkan dilihat dari aspek CAR tidak berbeda signifikan kinerja perbankan syariah dengan kinerja perbankan konvensional.

scholarly journals ANALISIS EFISIENSI BANK UMUM SYARIAH HASIL PEMISAHAN DAN NON PEMISAHAN SERTA FAKTOR-FAKTOR YANG MEMPENGARUHINYA (STUDI PADA BANK UMUM SYARIAH YANG TERDAFTAR DI OTORITAS JASA KEUANGAN PADA PERIODE 2011-2016)

2018 ◽  
Vol 9 (1) ◽  
Author(s):  
FITRI FADILAH ◽  
INDRI YULIAFITRI
Keyword(s):  
Stochastic Frontier ◽  
Capital Adequacy ◽  
Bank Capital ◽  
Return On Assets ◽  
Stochastic Frontier Approach ◽  
Capital Adequacy Ratio

Abstrak. Pengaruh Pendapatan Pelanggan, Modal Bisnis, Margin, Dan Nilai Collateral Terhadap Pembiayaan Murabahah Pada Bank Bni Syariah Mikro Kantor Cabang Pembantu Praya. Penelitian ini bertujuan untuk mengukur efisiensi Bank Umum Syariah hasil pemisahan dan non-pemisahan serta menganalisis perbedaan efisiensi Bank Umum Syariah hasil pemisahan dan non-pemisahan. Selain itu, juga akan menganalisis pengaruh ukuran bank, Capital Adequacy Ratio (CAR), Return on Assets (ROA), Non Performing Financing (NPF), Financing to Deposit Ratio (FDR) serta Biaya Operasional terhadap Pendapatan Operasional (BOPO) terhadap efisiensi. Populasi dalam penelitian ini sebanyak 13 Bank Umum Syariah, sedangkan sampel dalam penelitian ini adalah sebanyak 6 Bank Umum Syariah yang terbagi menjadi 2 kelompok bank yaitu bank hasil pemisahan dan bank bukan hasil pemisahan. Metode yang digunakan untuk mengukur efisiensi adalah Stochastic Frontier Approach (SFA) dengan pendekatan intermediasi. Uji Mann Whitney U-Test digunakan untuk menganalisis perbedaan Bank Umum Syariah hasil pemisahan dan non-pemisahan.Metode Generalized Least Squared (GLS) digunakan untuk mengetahui pengaruh faktor determinan terhadap efisiensi. Hasil penelitian ini menunjukkan bahwa tidak terdapat perbedaan efisiensi antara Bank Umum Syariah hasil pemisahan dan non-pemisahan. Hasil penelitian lainnya menunjukkan bahwa ukuran bank dan FDR berpengaruh positif signifikan terhadap efisiensi, serta NPF berpengaruh negatif signifikan terhadap efisiensi.

scholarly journals Pengaruh Rasio Kecukupan Modal, Likuiditas, Risiko Kredit dan Efisiensi Biaya Terhadap Profitabilitas Pada Bank Go Public

2020 ◽  
Vol 7 (1) ◽  
pp. 1-9
Author(s):  
Uli Wildan Nuryanto ◽  
Anis Fuad Salam ◽  
Ratih Purnama Sari ◽  
Dede Suleman
Keyword(s):  
Interest Rates ◽  
Deposit Insurance ◽  
Stock Exchange ◽  
Predictor Variable ◽  
Capital Adequacy ◽  
Coefficient Of Determination ◽  
Bank Capital ◽  
Capital Adequacy Ratio ◽  
Interest Margins ◽  
Domestic Banks

Abstract - This increase in economic growth does not necessarily increase the profitability of banks in Indonesia. There are three fundamental problems that have been unearthed by the Deposit Insurance Corporation (LPS) for banks, among others, the first decline in bank interest rates continuously causing bank interest margins to thin. Second, the regulatory burden requires banks to set aside capital for additional bank capital reserves and thirdly the potential increase in the risk of non-performing loans due to global economic uncertainty and the uneven recovery of the domestic economy. For this reason, this research was conducted to find out how much profitability of domestic banks listed on the Indonesia Stock Exchange in the period 2014-2018 and also the relationship between internal predictors which, according to the review study, had a significant effect on profitability. The population in this study were 43 banks listed on the Indonesia Stock Exchange in the 2014-2018 period while the sample was 10 banks listed on the IDX with the largest number of assets according to Bank Indonesia using the purposive sampling method. The results showed a significant CAR, LDR, NPL and BOPO significantly influence ROA. While partially LDR, NPL and BOPO have a significant effect on ROA while CAR has no significant effect. The magnitude of the effect of the predictor variable on profitability using the coefficient of determination obtained by 74.2% while the remaining 25.8% is influenced by other variables outside this research model.Keywords: Capital Adequacy Ratio (CAR), Liquidity Ratio (LDR), Credit Risk (NPL), Operational Cost Efficiency (BOPO). Profitability (ROA).

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

2021 ◽  
Vol 26 (1) ◽  
pp. 153
Author(s):  
Abdurrahman Setiawan, Susy Muchtar
Keyword(s):  
Stock Exchange ◽  
Sampling Technique ◽  
Capital Adequacy ◽  
Bank Loan ◽  
Bank Capital ◽  
Loan Loss ◽  
Return On Equity ◽  
Loss Reserve ◽  
Capital Adequacy Ratio ◽  
Negative Effect

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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