Proceedings of the International Joint Conference on Arts and Humanities (IJCAH 2020)

Analysis of Influential Factors on Capital Buffer in Indonesian Banks

Authors
Musdholifah, Muhammad Misbahul Chair, Yulita Wulandari
Corresponding Author
Musdholifah
Available Online 3 December 2020.
DOI
https://doi.org/10.2991/assehr.k.201201.214How to use a DOI?
Keywords
Capital Buffer, Lag of Capital Buffer, Loan to Total Assets Ratio
Abstract

This study aimed at revealing the influence of Lag of Capital Buffer, Return on Equity, Non Performing Loans, Loans to Total Assets Ratio, and GDP Growth on Capital Buffer. 31 commercial banks registered in Indonesia Stock Exchange was chosen as the samples using purposive sampling technique. This study used quantitative research approach with causality research design. The data were in a form of documentation of financial statements and then were analyzed using variable calculation, classic assumption test, and multiple regression. Results showed that Lag of Capital Buffer influences Capital Buffer through continuous optimization of bank capital to optimal levels. Another finding was Loan to Total Assets Ratio affected Capital Buffer by transferring capital reserves to loans so that the capital reserves could decrease. This study suggested that banks, customers, and investors are expected to consider Lag of Capital Buffer and Loan to Total Assets Ratio in coining good decision making over banking problems.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Joint Conference on Arts and Humanities (IJCAH 2020)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
3 December 2020
ISBN
978-94-6239-285-4
ISSN
2352-5398
DOI
https://doi.org/10.2991/assehr.k.201201.214How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Musdholifah
AU  - Muhammad Misbahul Chair
AU  - Yulita Wulandari
PY  - 2020
DA  - 2020/12/03
TI  - Analysis of Influential Factors on Capital Buffer in Indonesian Banks
BT  - Proceedings of the International Joint Conference on Arts and Humanities (IJCAH 2020)
PB  - Atlantis Press
SP  - 1271
EP  - 1276
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.201201.214
DO  - https://doi.org/10.2991/assehr.k.201201.214
ID  - 2020
ER  -