Profitability Determinant of Conventional Commercial Banks using Credit Risk As a Moderating Variable
Journal Title: International Journal of Economics, Commerce and Research (IJECR) - Year 2018, Vol 8, Issue 2
Abstract
This research aimed to analyze the influence of CAR, LDR and BOPO partially on profitability (NIM) and to analyze NPL as a moderating variable in relation between CAR with NIM, LDR with NIM, and BOPO with NIM. The population of this research is the Conventional Commercial Bank in Indonesia. The sampling method used is saturation sampling, taken from Conventional Commercial Bank listed on OJK. This research was conducted during the period of 2012-2015 and selected as many as 96 Conventional Commercial Banks that became a sample research. The research data analysis methodology used is, multiple linear regression analysis and moderated regression analysis (MRA) with residual test. The results of multiple linear regression analysis showed that partially, CAR, LDR and BOPO significantly influenced the profitability (NIM) and they had negative relations with the net interest margin (NIM). The results of the moderated regression analysis (MRA) with residual test showed that NPL is able to moderate influence of CAR, LDR, and BOPO on the profitability (NIM).
Authors and Affiliations
WIDYA PUSPA ANDIKA, ISTI FADAH, NOVI PUSPITASARI
Keywords
Related Articles
- EP ID EP343900
- DOI 10.24247/ijecrapr20182
- Views 117
- Downloads 0
TAPIOCA IN TAMILNADU-AN OVERVIEW
Tapioca is an important staple food crop and industrial crop in Asia, Africa, and Latin America. Because of its drought tolerance and wider adaptability to varied soil nutrient and agro-climatic conditions, resistance to...
Make in India – Prospects for Employment Generation
India has been witnessing a serious problem with employment generation. “Make in India” campaign aims at transforming India into a global manufacturing hub and generate enough employment. However, the current status of t...
A Comparative Analysis of Selected Sectors of The Kuwaiti Economy
It is essential for investors when they want to make their decisions to have reliable information on the sector they are interested in. This paper compares four sectorial groups of the Kuwaiti economy (Real Estate, Banki...
CHANGING FACE OF EUROPE: THE PROJECTED IMPACT ON EUROPE’S “CORE” AND “PERIPHERY” OF CHINESE FDI INTO THE CEEC REGION
Chinese Foreign Direct Investment (FDI) is earmarked continuously for Central and Eastern European Countries (CEEC), culminating thusfar with China’s announced plan to enlarge the deep water cargo port in Piraeus, near A...
Analytical Reflection of Balance of Payment Concerning Economy of Bangladesh
A country’s balance of payment articulates whether that country hoards abundant to recompense for its imports. It harmoniously divulges whether the country harvests enough economic yields to pay for its advancement. As a...