Social Sciences
3 years ago

Boosting Bank Profits: ROA Key to Healthier Capital Adequacy Ratio

Owner
Pengaruh Return On Assets(ROA) Dan return On Equity(ROE) terhadap Kinerja Kesehatan Capital Adequacy Ratio(CAR) Pada Bank BTPN
Harun Al Rasyid, Suryanto Sosrowidigdo

Paper Summary

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The study looked at how Return on Assets (ROA) and Return on Equity (ROE) affect the health of a bank's Capital Adequacy Ratio (CAR). They found that ROA has a positive impact on CAR, while ROE does not. However, when both ROA and ROE are considered together, they have a significant positive effect on CAR. This means that ROA and ROE contribute to 84.1% of the bank's CAR, with the remaining 15.9% explained by other factors.