Islamic Banking : Jurnal Pemikiran dan Pengembangan Perbankan Syariah
Vol 9 No 1 (2023): Islamic Banking:Jurnal Pemikiran dan Pengembangan Perbankan Syariah - Agustus 202

Analysis of Factors Influencing The Capital Buffer In Sharia Commercial Banks In Indonesia

Rizki Amalia Tanjung (Faculty of Islam Economics and Business, State Islam University of Sumatera Utara)
Imsar Imsar (Faculty of Islam Economics and Business, State Islam University of Sumatera Utara)
Rahmat Daim Harahap (Faculty of Islam Economics and Business, State Islam University of Sumatera Utara)



Article Info

Publish Date
08 Aug 2023

Abstract

Capital Buffer is the difference between the ratio of bank capital to the minimum capital adequacy ratio in accordance with central bank regulations. This study aims to determine the determinants of Capital Buffer in Islamic Commercial Banks in Indonesia in 2018-2021. This study aims to examine the effect of ROE, NPF, FDR, BOPO, and Bank Size on the Level of Capital Buffer simultaneously. The analytical method uses a quantitative research approach and uses secondary data. In this study, the analysis technique used was panel data regression with a fixed effect model using the Eviews 10 tool. Based on the results of the analysis of this study, it shows that ROE has no significant effect on Capital Buffer. FDR has no significant correlation to Capital Buffer. NPF has no significant effect on the Capital Buffer, BOPO has no significant correlation on the Capital Buffer, and Bank Size has a significant effect on the Capital Buffer. Simultaneously ROE, FDR, NPF, Bank Size, and BOPO have a significant effect on Capital Buffer. the results of the regression estimation show that the independent variable has a predictive ability of the model of 80.25%, while the remaining 19.75% is influenced by other factors outside the model.

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Journal Info

Abbrev

isbank

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences

Description

Islamic Banking : Jurnal Pemikiran dan Pengembangan Perbankan Syariah is an open access peer-reviewed online journal that provides a forum for sharing scientific studies on Islamic economics and banking. Editors welcome articles and research reports that address current issues such as: sharia ...