The Role of Profitability and Liquidity in Meeting the Feasibility Standards of Sharia Banking with Capital Adequacy as A Moderating Variable in Indonesia
This study investigates the impact of profitability and liquidity on bank viability, considering capital adequacy as a moderating factor in Islamic commercial banks in Indonesia. The research sample consists of 9 Islamic commercial banks from 2018 to 2022. The dependent variable, bank survival, is a...
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| Format: | Article |
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Universitas Airlangga, Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis
2024-12-01
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| Series: | JIET (Jurnal Ilmu Ekonomi Terapan) |
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| Online Access: | https://e-journal.unair.ac.id/JIET/article/view/59952 |
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| author | Padli Pawaid Yahya Joko Setyono |
| author_facet | Padli Pawaid Yahya Joko Setyono |
| author_sort | Padli Pawaid Yahya |
| collection | DOAJ |
| description | This study investigates the impact of profitability and liquidity on bank viability, considering capital adequacy as a moderating factor in Islamic commercial banks in Indonesia. The research sample consists of 9 Islamic commercial banks from 2018 to 2022. The dependent variable, bank survival, is assessed using Return on Assets (ROA). The independent variable, profitability, is measured by Return on Equity (ROE), with Capital Adequacy Ratio (CAR) as the moderating variable. Control variables include Net Profit Margin (NPM), Operational Efficiency (BOPO), and Loan to Deposit Ratio (LDR). Analysis is conducted using multiple linear regression with a Fixed Effects model. The findings indicate that capital adequacy functions as a pure moderator, enhancing the relationship between NPM and ROA while weakening the relationship between ROE and ROA. |
| format | Article |
| id | doaj-art-413396b6a51944aca66f0fb124e4a74e |
| institution | OA Journals |
| issn | 2541-1470 2528-1879 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Universitas Airlangga, Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis |
| record_format | Article |
| series | JIET (Jurnal Ilmu Ekonomi Terapan) |
| spelling | doaj-art-413396b6a51944aca66f0fb124e4a74e2025-08-20T01:56:31ZengUniversitas Airlangga, Departemen Ilmu Ekonomi Fakultas Ekonomi dan BisnisJIET (Jurnal Ilmu Ekonomi Terapan)2541-14702528-18792024-12-019223524710.20473/jiet.v9i2.5995258118The Role of Profitability and Liquidity in Meeting the Feasibility Standards of Sharia Banking with Capital Adequacy as A Moderating Variable in IndonesiaPadli Pawaid Yahya0https://orcid.org/0009-0004-3532-0933Joko Setyono1Sunan Kalijaga State Islamic University, Yogyakarta, IndonesiaSunan Kalijaga State Islamic University, Yogyakarta, IndonesiaThis study investigates the impact of profitability and liquidity on bank viability, considering capital adequacy as a moderating factor in Islamic commercial banks in Indonesia. The research sample consists of 9 Islamic commercial banks from 2018 to 2022. The dependent variable, bank survival, is assessed using Return on Assets (ROA). The independent variable, profitability, is measured by Return on Equity (ROE), with Capital Adequacy Ratio (CAR) as the moderating variable. Control variables include Net Profit Margin (NPM), Operational Efficiency (BOPO), and Loan to Deposit Ratio (LDR). Analysis is conducted using multiple linear regression with a Fixed Effects model. The findings indicate that capital adequacy functions as a pure moderator, enhancing the relationship between NPM and ROA while weakening the relationship between ROE and ROA.https://e-journal.unair.ac.id/JIET/article/view/59952profitabilityroaroeislamic banknpmliquidityldrcapital adequacy |
| spellingShingle | Padli Pawaid Yahya Joko Setyono The Role of Profitability and Liquidity in Meeting the Feasibility Standards of Sharia Banking with Capital Adequacy as A Moderating Variable in Indonesia JIET (Jurnal Ilmu Ekonomi Terapan) profitability roa roe islamic bank npm liquidity ldr capital adequacy |
| title | The Role of Profitability and Liquidity in Meeting the Feasibility Standards of Sharia Banking with Capital Adequacy as A Moderating Variable in Indonesia |
| title_full | The Role of Profitability and Liquidity in Meeting the Feasibility Standards of Sharia Banking with Capital Adequacy as A Moderating Variable in Indonesia |
| title_fullStr | The Role of Profitability and Liquidity in Meeting the Feasibility Standards of Sharia Banking with Capital Adequacy as A Moderating Variable in Indonesia |
| title_full_unstemmed | The Role of Profitability and Liquidity in Meeting the Feasibility Standards of Sharia Banking with Capital Adequacy as A Moderating Variable in Indonesia |
| title_short | The Role of Profitability and Liquidity in Meeting the Feasibility Standards of Sharia Banking with Capital Adequacy as A Moderating Variable in Indonesia |
| title_sort | role of profitability and liquidity in meeting the feasibility standards of sharia banking with capital adequacy as a moderating variable in indonesia |
| topic | profitability roa roe islamic bank npm liquidity ldr capital adequacy |
| url | https://e-journal.unair.ac.id/JIET/article/view/59952 |
| work_keys_str_mv | AT padlipawaidyahya theroleofprofitabilityandliquidityinmeetingthefeasibilitystandardsofshariabankingwithcapitaladequacyasamoderatingvariableinindonesia AT jokosetyono theroleofprofitabilityandliquidityinmeetingthefeasibilitystandardsofshariabankingwithcapitaladequacyasamoderatingvariableinindonesia AT padlipawaidyahya roleofprofitabilityandliquidityinmeetingthefeasibilitystandardsofshariabankingwithcapitaladequacyasamoderatingvariableinindonesia AT jokosetyono roleofprofitabilityandliquidityinmeetingthefeasibilitystandardsofshariabankingwithcapitaladequacyasamoderatingvariableinindonesia |