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The Impact of Non-Performing Loans, Return on Assets, Return on Equity, and Loan to Deposit Ratios on Minimum Capital Adequacy Requirement Based on Commercial Banks for Business Activities (BUKU) I 2015-2020

Author

Listed:
  • Rano Rahadian

    (University of Mercu Buana, Indonesia)

  • Dudi Permana

    (University of Mercu Buana, Indonesia)

Abstract

The purpose of this research is to gain an understanding of The Impact of Non-Performing Loans, Return on Assets, Return on Equity, and Loan to Deposit Ratios on Minimum Capital Adequacy Requirement Based on Commercial Banks for Business Activities (BUKU) I 2015-2020. The data of this research is obtained from financial reports published by each bank in 2015 to 2020 period. This research uses panel data processed using EViews software version 9.0. The results show that NPL negatively and insignificantly affects CAR. ROA gives positive and insignificant impacts toward CAR, while ROE causes negative and insignificant effects on CAR. In addition, there is positive and significant impacts on CAR caused by LDR.

Suggested Citation

  • Rano Rahadian & Dudi Permana, 2021. "The Impact of Non-Performing Loans, Return on Assets, Return on Equity, and Loan to Deposit Ratios on Minimum Capital Adequacy Requirement Based on Commercial Banks for Business Activities (BUKU) I 2015-2020," European Journal of Business and Management Research, European Open Science, vol. 6(6), pages 42-46, November.
    • Handle: RePEc:epw:ejbmr0:v:6:y:2021:i:6:id:51084
    DOI: 10.24018/ejbmr.2021.6.6.1084
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