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 99
- Downloads 0
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...
Challenges for Poverty Alleviation in Liberalized Indian Economy: An Overview
In the year 1991 New Economic Policy was launched with emergence of liberalization, privatization and globalization and the preamble of higher rate of growth in income, employment and living standards to sustain the grow...
A Comparative Study on Human Resource Development, Infrastructure and Occupational Structure of Schedule Tribes in the North East State of Manipur
Socioeconomic profile of the hilly district, tribal development programme, and distribution along with the characteristic of the population of scheduled tribes in Manipur is right to mention as the capacity of an economy...
AWARENESS ABOUT CASH LESS ECONOMY AMONG STUDENTS
The purpose of this study was to examine awareness about the cashless economy among students. The main objectives of this study to know the student’s awareness level and knowledge regarding the cashless ec...
Profitability Determinant of Conventional Commercial Banks using Credit Risk As a Moderating Variable
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...