Business, Management and Accounting
4 years ago

Bank Health Linked to Capital, Not Loans: Impact on Financial Stability

SCIENTIA JOURNAL : Jurnal Ilmiah Mahasiswa
ANALISIS TINGKAT KESEHATAN BANK UMUM YANG TERDAFTAR PADA BURSA EFEK INDONESIA
Yarlenti Lase, Haposan Banjarnahor

Paper Summary

The study analyzed the health of general banks listed on the Indonesian stock exchange by looking at how Capital Adequacy Ratio (CAR), Net Performing Loans (NPL), and Loan to Deposit Ratio (LDR) affect Return on Assets (ROA). Data from 2014 to 2018 was used, and tests showed that CAR had a significant impact on ROA, while NPL and LDR did not.