Capital adequacy, credit risk, operational efficiency and profitability
Liquidity as an intervening variable in national private commercial banks
Keywords:
Capital Adequacy, Credit Risk, Operational Efficiency, ProfitabilityAbstract
The purpose of this study is to analyze the effect of capital adequacy on liquidity, identify the impact of credit risk on liquidity, measure the effect of operational efficiency on liquidity, analyze the relationship between profitability and liquidity, identify the role of liquidity as an intervening variable and provide strategic recommendations for bank management. The research method used is quantitative research. Quantitative research methods can be interpreted as methods based on the philosophy of positivity, used to research certain populations or samples, data collection using research instruments, statistical data analysis. The results of the study show that capital adequacy has a positive and significant effect on liquidity., There is no significant effect between Credit Risk on liquidity, Operational efficiency has a significant effect on liquidity., There is no significant effect between capital adequacy on profitability, Credit Risk has a significant effect on Profitability, Operational efficiency has a significant effect on the Profitability variable, There is no significant effect between liquidity on Profitability, Liquidity is unable to mediate the effect of capital adequacy on Profitability, Liquidity is unable to mediate the effect of credit risk on Profitability and Liquidity is unable to mediate the effect of operational efficiency on Profitability
Downloads
References
Abiola, I., & Olausi, A.S. (2014). The Impact Of Credit Risk Management On The Commercial Banks Performance In Nigeria. International Journal Of Management And Sustainability, 3(5), 295–306.
Achmad, A., & Kristijadi, E. (2021). The Effect of Credit Risk on Capital with Efficiency as an Intervening Variable. Journal Of Business And Banking, 10(2), 213–231.
Agbeja, O., Adelakun, O. J., & Olufemi, F. I. (2015). Capital Adequacy Ratio And Bank Profitability In Nigeria: A Linear Approach. International Journal Of Novel Research In Marketing Management And Economics, 2(3), 91–99.
Agustini, NLP, Wiagustini, NLP, & Purbawangsa, IBA (2017). The Effect of Capital Adequacy and Credit Risk on Profitability: Liquidity as a Mediator in Rural Credit Banks in Badung Regency. E-Journal of Economics and Business, Udayana University, 6(2), 2161–2192.
Amene, TB, & Alemu, GA (2019). Determinants Of Financial Performance In Private Banks: A Case In Ethiopia. Full Length Research Paper, 13(9), 291–308.
Astrini, KS, Suwendra, IW, & Suwarna, IK (2019). The Effect of CAR, LDR, and Bank Size on NPL in Banking Institutions Listed on the Indonesia Stock Exchange. Bisma: Journal of Management, 4(1), 34–41.
Barus, AC, & Erick. (2016). Analysis of Factors Affecting Non Performing Loans at Commercial Banks in Indonesia. Jurnal Wira Ekonomi Mikroskil: Jwem, 6(2), 113–122.
Bukian, NMWP (2016). The Effect of Asset Quality, Liquidity, Profitability and Operational Efficiency on Capital Adequacy Ratio. E-Journal of Management Unud, 5(2), 1189–1221.
Chanaba, J. C. (2020). Impact Of Credit Risk In Profitability Ratios On Commercial Banks In Ecuador. La Jolla, California.
Firmanila, F. (2023). The Effect of Capital Adequacy, Credit Risk, and Operational Efficiency on Profitability with Liquidity as an Intervening Variable at Regional Development Banks in Indonesia. Indonesian Journal of Strategic Management, 6(1), 13–27.
Hafiz, MS, Radiman, SM, & Jufrizen. (2019). Analysis of Determinant Factors of Return on Assets in State-Owned Banks Listed on the Indonesia Stock Exchange. Journal of Management and Finance, 8(2), 107–122.
Haryanto, S. (2016). Determinants of Bank Capital Through Profitability, Risk, Company Size, Efficiency and Asset Structure. Journal of Economics and Business, 19(1), 117–138.
Jannati, NB, & Budiarti, L. (2022). The Effect of Credit Distribution on the Profitability of Public Banks During the Pandemic with Credit Risk as a Moderating Variable. Menara Ilmu, 15(1), 76–89.
Jensen, M. C., & Meckling, W. H. (1976). Theory Of The Firm: Managerial Behavior, Agency Cost And Ownership Structure. Journal Of Financial Economics, 3(4), 305– 360.
Juwita, S., Raga, PDJ, Prasetyo, FI, & Rimawan, E. (2018). Effect Of Car (Capital Adequacy Ratio), Bopo (Operational Costs On Operational Revenues) And Ldr (Loan To Deposit Ratio) To Roa (Return On Assets) At Bank Pasar Bogor City. International Journal Of Innovative Science And Research Technology, 3(6), 305–309.
Kristina. (2020). The Influence of Capital Adequacy Ratio, Operating Costs on Operating Income, and Loan to Deposit Ratio on Return on Assets (Empirical Study of Banking Sub-Sectors Registered on the IDX in 2015-2018). Muhammadiyah University of Surakarta.
Kusuma, EC, & Haryanto, AM (2017). Analysis of the Influence of Bank Performance Variables (CAR, ROA, BOPO and LDR), as well as Credit Growth and Credit Quality on Non Performing Loans (NPL). Diponegoro Journal of Management, 5(4), 108–120.
Martono. (2002). Banks and Other Financial Institutions. Yogyakarta: Ekonosia.
Mendoza, R., & Rivera, J. P. R. (2017). The Effect Of Credit Risk And Capital Adequacy On The Profitability Of Rural Banks In The Philippines. Scientific Annals Of Economics And Business, 64(1), 83–96.
Nugrahanti, P., Tanuatmodjo, H., & Purnamasari, I. (2018). The Effect of Capital Adequacy on Profitability in Islamic Commercial Banks. Journal of Business Management Education (Jbme), 3(3), 136–144.
Paramita, EA (2021). The Effect of Liquidity, Asset Quality, Market Sensitivity and Efficiency on Profitability at National Private Foreign Exchange Commercial Banks. Perbanas Surabaya College of Economics.
Permatasari, GM, & Filianti, D. (2020). Analysis of Profitability Determinants in the Islamic Banking Industry for the Period 2011-2018 Auto Regressive Distributed Lag (Ardl) Approach. Journal of Islamic Economics Theory and Application, 7(6), 1102–1117.
Putri, NKAP, Wiagustini, LP, & Abundanti, NN (2018). The Influence of NPL, CAR and BOPO on Profitability at BPR in Denpasar City. E-Journal of Management Unud, 7(11), 6212 – 6238.
Qonitatillah, M. (2021). The Influence of Non Performing Loan (NPL), Liquidity, Profitability, Operational Efficiency and Sensitivity to the Capital Adequacy Ratio (Case Study of Banks Listed on the Indonesia Stock Exchange 2017-2019. Islamic University of Malang.
Rinofah, R., Sari, PP, & Widyastuti, ML (2022). The Effect of Capital Adequacy and Credit Risk on Profitability in Banking with Liquidity as an Intervening Variable. E-Jurnal Ecobisma: Journal of Economics, Business and Management, 9(1), 101–117.
Sari, FN, & Endri, E. (2019). Determinants Of Return On Assets (Roa) On Conventional Banks Listed On Indonesian Stock Exchange (Idx) Period 2013 - 2017. Iosr Journal Of Business And Management (Iosr-Jbm), 21(4), 52–62.
Sari, L., & Septiano, R. (2020). Effects Of Intervening Loan To Deposit Ratio On Profitability. Journal Of Accounting And Financial Management, 1(2), 239–252.
Published
How to Cite
Issue
Section
Copyright (c) 2025 Ela Yuliana Sari, Anis Chariri
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
