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Application of Basel III on health level in banking sub sector company

Author

Listed:
  • Yutaka Erwan

    (aculty of Business and Management, Widyatama University, Bandung, Indonesia)

  • John Henry Wijaya

    (aculty of Business and Management, Widyatama University, Bandung, Indonesia)

Abstract

The purpose of this study is to determine the effect of the level of banking health on the ratio of liquidity coverage in the corporate banking sub-sector included in the category of commercial banks based on business activities (BOOK) 3 during the 2017-2018 period with each period only taking 2 quarterly data. The sample in this study was a banking company listed on the IDX and included in a commercial bank based on business activities (BOOK) 3 consisting of 19 banks selected using the purposive sampling method, with a total of 76 data units. The analytical method used in this study is panel data regression analysis. The results of partial hypothesis testing indicate that the ratio of liquidity coverage is influenced by the level of health with the Altman Z-Score modification method and the Grover G-Score method. Key Words: Liquidity coverage ratio, Altman Modifikasi, Grover, Basel III, regression analysis

Suggested Citation

  • Yutaka Erwan & John Henry Wijaya, 2020. "Application of Basel III on health level in banking sub sector company," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(3), pages 70-79, April.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:3:p:70-79
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    References listed on IDEAS

    as
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    5. Hoerova, Marie & Mendicino, Caterina & Nikolov, Kalin & Schepens, Glenn & Heuvel, Skander Van den, 2018. "Benefits and costs of liquidity regulation," Working Paper Series 2169, European Central Bank.
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