Christaria, Fiola and Kurnia, Ratnawati (2016) The Impact of Financial Ratios, Operational Efficiency and Non-Performing Loan Towards Commercial Bank Profitability. Accounting and Finance Review (AFR), 1 (1).
Full text not available from this repository.Abstract
Objective - The objective of this paper is to determine the impact of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Operational Efficiency proxies by Operational Expense to Operating Income Ratio (BOPO)and Non-Performing Loan (NPL) towards bank profitability proxies by Return on Assets (ROA). Methodology/Technique - Purpose sampling is applied to gather samples of the banking sector that was listed on the Indonesia Stock Exchange for the period of 2012-2014. Multiple regression analysis was used to analyse data. Findings - The F test result shows that CAR, LDR, BOPO, and NPL simultaneously, have a significant impact towards ROA. This means that the model can be used to predict bank profitability. It is also deduced that Operational Efficiency proxies by Operational Expense to Operating Income Ratio has a significant impact towards banking profitability. Novelty - This paper suggests that banks perform lending selectively and banks maintain the level of non-performing loans to be low in order to manage the risks and to improve their profitability as a means of increasing public confidence level.
| Item Type: | Article |
|---|---|
| Keywords: | Capital Adequacy Ratio; Loan to Deposit Ratio; Non-performing Loan; Operating Expense to Operating Income; Return on Assets |
| Subjects: | 300 Social Sciences > 330 Economics > 332 Financial Economics (Shares, Investment) |
| Divisions: | Faculty of Business > Accounting |
| Depositing User: | Administrator UMN Library |
| Date Deposited: | 13 Dec 2021 02:07 |
| Last Modified: | 13 Dec 2021 02:07 |
| URI: | https://kc.umn.ac.id/id/eprint/19512 |
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