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The Impact of Liquidity, Liabilities, and Equity on Bank Profitability Syahputri, Andini; Niswa, Khairun; Ginting, Lita Hepika; Nasution, Fadillah; Aliah, Nur
Proceedings of The International Conference on Computer Science, Engineering, Social Science, and Multi-Disciplinary Studies Vol. 1 (2025)
Publisher : CV Raskha Media Group

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.64803/cessmuds.v1.100

Abstract

This study aims to examine the role of liabilities in the financial structure of the banking sector and their implications for bank liquidity, solvency, and profitability through a literature review approach. The research method employed is a library study that analyzes relevant national journal articles published in recent years. Data analysis was conducted using content analysis by comparing and synthesizing the findings of previous studies. The results indicate that liabilities constitute the primary source of bank funding and are closely associated with liquidity and solvency risks. Partially, liabilities do not always have a significant effect on bank profitability; however, simultaneously with equity, liabilities contribute to overall bank financial performance. The conclusion of this study emphasizes that prudent liability management, balanced with assets and equity, is a crucial factor in maintaining banking stability and sustainability.
The Effect of ALMA, Equity, and Liabilities on Financial Performance and Company Value of Indonesian Banks Natasya, Rizky; Ramadani, Zahira Naswa; Safana, Alya; Hidayah, Siti Nur; Aliah, Nur
Proceedings of The International Conference on Computer Science, Engineering, Social Science, and Multi-Disciplinary Studies Vol. 1 (2025)
Publisher : CV Raskha Media Group

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.64803/cessmuds.v1.101

Abstract

This study was designed to identify the influence of Asset and Liability Management (ALMA), equity, and liabilities on financial performance and the value of banking companies in Indonesia. ALMA is a crucial strategy for maintaining bank financial stability through balanced asset and liability management. Meanwhile, equity and liabilities reflect the capital structure, which underpins a bank's ability to absorb risk and sustainably operate.This study utilizes an explanatory quantitative method that empirically explains the relationships between variables.The data for this study were obtained from the financial statements of the banks selected as the sample. The research findings demonstrate that ALMA and equity positively influence financial performance, while liabilities negatively influence it. Furthermore, financial performance has been shown to play a significant role in increasing company value. These findings indicate that effective asset and liability management, along with a strong capital structure, can generate positive performance and enhance investor perceptions of bank company value. This study is expected to contribute to broadening financial management insights and serve as a reference for the banking industry in developing more effective financial management strategies.