Comparative study of financial soundness of state and private banks in Indonesia

Rahmah, Miladiatur and Retnasih, Nora Ria ORCID: (2023) Comparative study of financial soundness of state and private banks in Indonesia. Management, Business, and Accounting (MBIA), 22 (1). pp. 113-124. ISSN p-ISSN 2086-5090, e-ISSN: 2655-826

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This study aims to investigate the impact of bank soundness on the return on assets (ROA) experienced by state and private banks over the 2016-2022 fiscal quarters. In this study, a quantitative research method employing secondary data obtained through the official website of the OJK (Financial Services Authority) was used as the research methodology. For this investigation, the panel data regression analysis carried out in EViews 9 was the analytical tool. According to research on state banks, the CAR and LDR variables have only a partially significant effect on ROA. Notwithstanding this, ROA is significantly influenced by the NPL and NIM variables. On the other hand, private banks provide some evidence suggesting that the CAR and NPL variables do not have a significant impact on ROA. Several LDR and NIM variables significantly influence ROA.

Item Type: Journal Article
Keywords: Capital Adequacy Ratio (CAR); Loan to Deposit Ratio (LDR); Net Interest Margin (NIM); Non-Performing Loan (NPL); Return On Asset (ROA)
Subjects: 14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics
14 ECONOMICS > 1401 Economic Theory
Divisions: Faculty of Economics > Department of Management
Depositing User: Nora Ria Retnasih
Date Deposited: 21 Sep 2023 14:39


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