Islamic Banks in Indonesia Boost Capital Strength with Operational Efficiency Focus.
The study looked at factors influencing the Capital Adequacy Ratio in Islamic banks in Indonesia. They used data from 2016-2019 and found that the bank's size, liquidity, credit risk, and operational efficiency all play a role in determining the Capital Adequacy Ratio. Overall, these factors together have a positive impact on the ratio. However, individually, only operational efficiency had a significant negative effect on the ratio, while size, liquidity, and credit risk did not show a significant impact. The variables studied were able to explain 80.9218% of the Capital Adequacy Ratio.