Business, Management and Accounting
3 years ago

Banking sector faces risk as Net Interest Margin impacts Capital Adequacy Ratio.

1 view
Almana Jurnal Manajemen dan Bisnis
Analysis of Net Interest Margin (NIM) and Return on Assets (ROA)
Ajeng Ayu Wardhani Putri, Nor Norisanti, Faizal Mulia Z

Paper Summary

The study analyzed how Net Interest Margin (NIM) and Return On Assets (ROA) affect the Capital Adequacy Ratio (CAR) in 31 private banks in Indonesia. By using multiple linear regression analysis, the researchers found that both NIM and ROA have a significant impact on CAR. The fast expansion of the banking sector in 2018 led to a decrease in CAR due to the growth in risk-weighted assets.

Related papers

Business, Management and Accounting
2 years ago

Capital adequacy negatively impacts bank performance in Bangladesh, study finds.

Islamic Banking
Banking Finance
Microfinance
1 view
Theme background image
Social Sciences
2 years ago

Managers Boost Financial Performance at Bank Rakyat Indonesia, Transforming Banking Sector

Covid-19 SME Impact
Financial Management
Financial Literacy
1 view
Theme background image
Social Sciences
3 years ago

Boosting Bank Profits: ROA Key to Healthier Capital Adequacy Ratio

Social Media
Covid-19 SME Impact
Financial Management