Analysis of Influential Factors on Capital Buffer in Indonesian Banks
- 10.2991/assehr.k.201201.214How to use a DOI?
- Capital Buffer, Lag of Capital Buffer, Loan to Total Assets Ratio
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.
- © 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 - 10.2991/assehr.k.201201.214 ID - 2020 ER -