Eduvest - Journal of Universal Studies
Vol. 4 No. 10 (2024): Journal Eduvest - Journal of Universal Studies

Assessing the Impact of Leverage Ratio on Banking Efficiency in Indonesia

Lily, Kelvin (Unknown)
Danarsari, Dwi Nastiti (Unknown)



Article Info

Publish Date
20 Oct 2024

Abstract

This study analyzes the significance of the leverage ratio on the efficiency of banking companies with the aim of assessing the readiness and suitability of banking companies in facing the implementation of Basel 4 or Basel 3.1. Data from 47 banking companies in Indonesia from the period 2008 to 2023 were used as material for this study. The data used in the research were analyzed using the Dynamic Stochastic Frontier (DSF) method. This method allows for more accurate efficiency analysis by avoiding assumptions of technology at different times. The researchers hypothesize that banking companies with a leverage ratio level higher than the minimum limit applied in BASEL have better efficiency, and the results of this study show corresponding results within the leverage ratio limit of 20%.

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Journal Info

Abbrev

edv

Publisher

Subject

Aerospace Engineering Computer Science & IT Health Professions Neuroscience Social Sciences

Description

Eduvest - Journal of Universal Studies is a double blind peer-reviewed academic journal and open access to multidiciplinary fields. The journal is published monthly by Green Publisher Indonesia. Eduvest - Journal of Universal Studies provides a means for sustained discussion of relevant issues that ...