Determinants of Capital Buffer: Study on Conventional Commercial Banks in Indonesia



Abstract Views
634

Downloads
505

Citations

Share

##plugins.themes.bootstrap3.article.sidebar##

Submitted Mar 28, 2022
Published Apr 20, 2022
10.24018/ejbmr.2022.7.2.1379

Abstract viewed = 634 times

Table of Contents

##plugins.themes.bootstrap3.article.main##

This study aims to examine the factors that determine the capital buffer in conventional commercial banks operating in Indonesia. This study uses non-performing loans, bank size, return on equity, loans to total assets as independent variables, and capital buffer as the dependent variable. The population in this study was 38 conventional commercial banks that are still actively operating in Indonesia. The sampling method used the purposive sampling method according to the needs of the analysis and obtained 90 samples of observation data. The results showed that non-performing loans and loans to total assets had a negative effect on a capital buffer, while bank size had a positive effect. However, the return on equity has no effect on the capital buffer.

Keywords: Bank size capital buffer loan to total assets non-performing loans return on equity

Downloads

Download data is not yet available.

References

  1. Abbas, F., Yousaf, I., Ali, S., & Wong, W.-K. (2021). Bank capital buffer and economic growth: New insights from the US banking sector. Journal of Risk and Financial Management, 14(4), 142.
     Google Scholar
  2. Agustuty, L., & Andi, L. (2019). Determinan capital buffer pada industri perbankan di Indonesia: Studi empiris bank umum yang Go Publik di BEI tahun 2014-2018. Movere journal, 1(2), 64-174.
     Google Scholar
  3. Andiani, L. (2017). Pengaruh risiko, profitabilitas, kebijakan dividen, ukuran dan likuiditas bank terhadap capital buffer: Studi empiris bank umum di BEI. Jurnal Ilmu Dan Riset Akuntansi, 6(5).
     Google Scholar
  4. Anggraini, N. M. S., & Baskara, I, G, K. (2020). Factors affecting conventional general bank capital buffer in Indonesia. American Journal of Humaninties and Social Sciences Research, 4(3), 72-78.
     Google Scholar
  5. Anisa & Sutrisno. (2020). Capital buffer and determinant factors of conventional banks in Indonesia: Studi empiris bank umum konvensional yang terdaftar di BEI tahun 2016-2019. Journal of Asian Finance, 7(12), 377-384.
     Google Scholar
  6. Atici, G., & Guner, G. (2013). The determinants of capital buffer in tehe Turkish banking system; internasional business research journal, 6(1), 224-234.
     Google Scholar
  7. Belém, V. C., & Gartner, I. R. (2016). Análise empírica dos buffers de capital dos bancos Brasileiros no período de 2001 a 2011. Revista Contabilidade e Financas, 27(70).
     Google Scholar
  8. Borio, C., Furtine, C., & Lowe, P. (2001). Procyclicality of the Financial system and financial stability: Issues and Policy Options. Bis Papers 1.
     Google Scholar
  9. Braslins, G., & Arefjevs, I. (2013). Basel III: Countercyclical capital buffer proposal – the case of baltics. Procedia – social and behavioral sciences, 110, 986-996.
     Google Scholar
  10. D’Avack, F., & Levasseur, S. (2007). The determinan of capital buffer in CEECs (Central and eastren European countreies). Observatoire Francais Des Conjoctures Economiques.
     Google Scholar
  11. Eliskovski, M. (2014). The determinants of capital buffer in the Macedonian banking sector. Journal of Conterporary Economic and Business Issues, 1(2), 19-33.
     Google Scholar
  12. Fauziah., Nurhikmah., Pangestuty., & Wulandari, F. (2020). Determinants of Banking capital buffer in Indonesia. Journal of Indonesian Applied Economics, 8(1), 13-23.
     Google Scholar
  13. Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25. Semarang: Universitas Diponegoro.
     Google Scholar
  14. Girlts, B., & Ilja, A. (2014). Basel III: countercyclical capital buffer proposal: the case of Baltics. 2-nd international scientific conference “Contemporary issue in business, management, and education.110, 986-996.
     Google Scholar
  15. Jokipii, T., & Milne, A. (2008). The cyclical behaviour of european bank capital buffers. Journal of Banking & Finance, 32, 1440-1451.
     Google Scholar
  16. Latulanit, K. A., Amin, M., & Mawardi, M, C. (2018). Analisis penentuan portofolio optimal dengan menggunakan Markowitz pada perusahaan sektor yang terdaftar dalam indeks LQ45 di BEI. E-JRA, 07(6).
     Google Scholar
  17. Liu, J. (2016). Bank’s regulatory capital buffer and counter-cyclical behavior – Empirical analysis based on China’s 18 commercial banks. International Journal of Management Science and Business Administration, 2(4), 7-16.
     Google Scholar
  18. Luiz, A., Silva, P. A., & Yoshitomo, M. (2001). Can “moral hazard”: Explain the Asian cries? ADB Institute Research Paper.
     Google Scholar
  19. Myers, S, C. (1984). Capital struture puzzle. NBER working paper series: School of Management Massachusetts Institute of Technology.
     Google Scholar
  20. Peraturan Bank Indonesia (PBI) Nomor 15/12/PBI/2013 Tentang Kewajiban Modal Minimum Bank Umum.
     Google Scholar
  21. Peraturan Otoritas Jasa Keuangan (OJK) Nomor 6/PJOK.03/2016 Tentang Kegiatan Usaha dan Jaringan Kantor.
     Google Scholar
  22. Rose, P. S., & Hudgins, S. C. (2008). Bank management & financial service. New York: McGraw-Hill.
     Google Scholar
  23. Shim, J. (2013). Bank capital buffer and portofolio risk: The influence of business cyle and revenue diversification. Journal of Banking and Finance, 37, 761-772.
     Google Scholar
  24. Wareza, M. (2020). OJK Tunda Penerapan Basel III di Bank https://www.cnbcindonesia.com, diakses 1 Januari 2021. www.idx.co.id.
     Google Scholar