Proceedings of the 2017 International Conference on Organizational Innovation (ICOI 2017)

Analysis of Capital Buffer in Indonesian Banking

Authors
Isfenti Sadalia, Hartika Ichtiani, Novi Andrani Butar-Butar
Corresponding Author
Isfenti Sadalia
Available Online July 2017.
DOI
https://doi.org/10.2991/icoi-17.2017.21How to use a DOI?
Keywords
Capital Buffer, ROA, ROE, NPL, Lag of Capital Buffer, Loans to Total Assets, Bank Size, Dummy Variable.
Abstract
Capital buffer place a role as to anticipate the increasing of future lost. Basel Committee on Banking Supervision implements a Basel accord which required all banks to have capital adequacy ratio at 13% in order to strengthen the capital position. Moreover capital buffer also act to reduce the likelihood of banks having trouble during economic crisis. The purpose of this research is to know and analyze the effect of Non-Performing Loan (NPL), Bank Size (Size), Return on Asset (ROA), Return on Equity (ROE), Loans to Total Assets (LOTA), Lag of Capital Buffer (BUFFt-1), and dummy variable to capital buffer in Indonesia banking. This research used 30 samples of conventional banking which listed in Indonesia Stock Exchange for period 2012-2015. The result found the negative effect between Size, LOTA an BUFFt-1 to Capital Buffer. While NPL, ROA, ROE has no effect to Capital Buffer. This research also found that government bank and private bank has no different on capital buffer. NPL, Size, ROA, ROE, LOTA, BUFFt-1 and dummy variable have simultaneous effect on capital buffer. Independent variables in this research can explain capital buffer about 28.3575%.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Proceedings
2017 International Conference on Organizational Innovation (ICOI 2017)
Part of series
Advances in Intelligent Systems Research
Publication Date
July 2017
ISBN
978-94-6252-359-3
ISSN
1951-6851
DOI
https://doi.org/10.2991/icoi-17.2017.21How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Isfenti Sadalia
AU  - Hartika Ichtiani
AU  - Novi Andrani Butar-Butar
PY  - 2017/07
DA  - 2017/07
TI  - Analysis of Capital Buffer in Indonesian Banking
BT  - 2017 International Conference on Organizational Innovation (ICOI 2017)
PB  - Atlantis Press
SP  - 128
EP  - 133
SN  - 1951-6851
UR  - https://doi.org/10.2991/icoi-17.2017.21
DO  - https://doi.org/10.2991/icoi-17.2017.21
ID  - Sadalia2017/07
ER  -